Otellini was right, just that he couldn't get the hardware to get it working for that to be valid.
Had Moorestown been like Medfield, that logic might have worked. Back then the ARM ecosystem wasn't so entrenched. MeeGo would have had a chance to ramp up too.
Also, pushing UMPCs meant their mind was in the right place. Have they pushed for thin and light Tablets with long battery life at a reasonable price, we would be in a lot different position today.