Yes. That's exactly how he came to that conclusion.
Alan Kay scanned the room, noted some of the the greatest minds and contributors of early personal computers, took one look at Steve Jobs and assessed he wasn't the smartest person in the room because he was a business person.
It had nothing to do with his youth, lack of accomplishments, insight, ability to articulate himself at that age, etc. etc. etc. It also had nothing to do with the caliber of people they were hiring at Xerox, many who came from SRI and who had helped realize Doug Engelbart's vision.
It all came down to business people vs. tech.
