My take on it, was that Jobs believed only Apple should be the ones who were able to offer a solid, touch based interface on a smartphone. As far as Jobs saw it, the mere idea of having a touch screen smart phone belonged to him, and anybody else who produced one was stealing "his ideas".
Let's forget for a moment that a lot of the idea Steve had fell in love with, were really the ideas of other, much smarter people.
It wasn't the underlying technology that Apple were fighting against, it was the right to have a good end-user experience. If you look at a lot of the touch screen offering that started appearing after the iPhone, they were absolutely shit. My wife asked for a little Samsung touchscreen phone in 2009, and it was just an unresponsive, horrible piece of junk.
Then Android comes along. At first it lacks a lot of things, but is has potential. And even better, it's designed to run on any handset that fits the reference spec.
So its easy to use, offers a good solid end-user experience. Jobs saw this as competition, and he realized that it was the Apple Mac versus PC's all over again.
He lost the first round because over-priced hardware with limited or poor functionality, couldn't compete against a multitude of much cheaper hardware choices, running a single OS.
No wonder he was so livid. He saw the writing on the wall for his grand dream of dominating the smartphone business.
Ideas are nothing. Execution is everything. It's a shame he didn't learn that when he was first chucked out of Apple.