It's a pity that he chose to withdraw it, it would be great if high profile people like Steve could say stuff like this and stand by it without having to fear for fall-out. After all, the big winners from a piece like this are Google and Amazon, Amazon obviously have some big problems (see Nirvana's post above) and the sooner it gets to the attention of their top level execs the better.
Stuff like this can rot your company from the inside out, and being transparent about it (and even public) can help a lot.
Wow. I know so little about the internal workings of Google and had such a good impression of them until today. The Wave post and now this -- not the post which was constructive and insightful, no company is perfect and it's important to examine flaws -- but for the decision to pull the post. Shameful. Steve is only wrong with one point: Google's reputation for arrogance seems actually well-deserved.
This is one of the very few times I've seen Steve back-off of a provocative statement; whatever made that happen does not bode well for Google and I think my point stands.
I don't get the impression that he was "forced" to back off, but rather that he accidentally posted something that was meant for internal consumption in public. I think it's perfectly within his rights to delete the post - most people don't talk the same way with their co-workers as they do in public, and it's perfectly understandable.
Stuff like this can rot your company from the inside out, and being transparent about it (and even public) can help a lot.