It’s like we said on the iPad, if you see a stylus, they blew it.

– Steve Jobs, pointing out that a truly effective touch-based device should never need a stylus, which is really a mouse substitute. A stylus divides the functioning of the device unnecessarily, when creative use of touch can avoid the need.  The announced Microsoft Surface has a stylus.

Steve Jobs also said this:

Who wants a stylus. You have to get em and put em away, and you lose em. Yuck. Nobody wants a stylus.

Just look at what the iPad can do sans stylus: