I think the anger was justified at the time. The rich web experience back in those days was extremely limited (as it still sometimes is, on iOS). There was no way anyone was going to write a music player that could compete with the built-in one using just the "rich web experience".
Connection speeds in the original iPhone era were low, as was processing power. Spotify wouldn't have been able to provide you with the service it can provide over the web now.
The focus on the web was also a complete break from existing smartphones, where installing applications had been the norm for years. iPhones weren't exactly the first to feature apps, or even app stores, and delivering an iPhone experience that was as smooth as a Windows Mobile or Blackberry experience was going to be difficult without native code. At the same time, everyone already knew that upper and middle management (and all the other departments to convince when introducing new software) were going to buy iPhones because new, shiny Apple stuff often scores well as a status symbol.
At the time, it made complete sense to be mad. It's not that people didn't want to create websites, it's that websites were simply not equivalent to the real deal. A lot has changed since then.
As I recall, the "rich web experience" that Jobs was pushing for didn't mean it would be mobile Web for everything. Wasn't his idea that apps could be installed locally, but would be written in JavaScript and use a Web stack for the UI?
Given the popularity of tools like Cordova and React Native, and the absolute dominance of Electron on desktop, I'd say he wasn't exactly wrong.
