from Mike Boich:
I was actually present for this. My recollection was that Don Knuth's response was more along the lines of "I seriously doubt that". (It was still quite amusing though!)
Maybe Knuth was more of a rebel back in the day, but somehow I can't imagine him having that sort of response.
In Randall Munroe's Authors@Google talk [http://www.youtube.com/watch?v=zJOS0sV2a24], Don Knuth asks him a question at ~21:30 and at ~25:30 Randall asks Knuth about this very anecdote. Knuth's response is "I've been told this story a number of times...but I was impressed by him more than he was impressed by me."
Knuth: Steve Jobs once told me in 1980 that he had a vision where every day we'd get a CD-ROM with a thousand brand new programs on it, and that although each program would cost just $5, the number of potential users for each program would be high enough that software developers would get a good return on their work.
Seriously, think about what goes into it. You have to believe that you are capable of changing the reigning viewpoint, that almost everybody else in the field is wrong. Without an epic ego, great innovators would never get started.
Your comment seems to be more relevant to your own issues than to the actual story, but let me just point out that the "Steve Jobs" character in the story (let's ignore the question of whether or not it's actually true) isn't demonstrating an "epic ego" at all. He's being cloyingly sycophantic.
What does a man with an epic ego say when he meets Donald Knuth? Probably "Hi, nice to meet you".
from Mike Boich: I was actually present for this. My recollection was that Don Knuth's response was more along the lines of "I seriously doubt that". (It was still quite amusing though!)