Incorrect. That image is banded around just to serve a particular viewpoint. There was already a capacitive touchscreen android device in the prototype stages at the same time. Look at this video: http://www.youtube.com/watch?feature=player_detailpage&v...
Correct... That isn't being disputed. The comment was:
"While Android would definitely exist (it predates the iPhone's unveiling by years) it would be a very, very different beast."
The "controversy" is around the claim of Android existing before iOS. That claim wasn't even made though if you read that comment correctly and notice the word "unveiling"
http://news.cnet.com/i/ne/p/2008/android_prototype_550x385.j...