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Steve Jobs didn't really know anything about cabinetry, because using plywood / MDF in places where it won't be seen but which would benifit from dimensional stability is absolutely common and there's no reason it shouldn't be.
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You might be missing the point of the quote. He's not talking about whether it is commonly done. He's talking about the mentality that justifies sacrificing the aesthetic and artistry, in favor of things like "dimensional stability". He is giving a reason why it shouldn't be done, and people can disagree about whether the reason is a good one.
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He's saying that carpenters who make nice things wouldn't use a material like that, but they objectively do and this doesn't sacrifice the aesthetic or artistry.

He specifically calls out the use of the material in a place it wouldn't be seen as something that the carpenter making beautiful cabinets wouldn't do, but that's actually something they absolutely do. He's trying to argue some other point by way of this analogy, but his analogy is wrong because he doesn't know anything about it. It would be like if I was trying to argue my point by way of car analogy but the example I chose was to say that car enthusiasts insist on genuine OEM parts, I'm only exposing myself as somebody who doesn't understand car people.

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