This is a great take on it, although I might offer that Jobs never really solved the innovator's dilemma -- he just managed it. (Solve implies the problem goes away; not sure that applies here.)
Rather, what Jobs did was willingly accept potential cannibalization of some products in favor of others. Normally, in a large company, you have teams representing core products that morph into influential forces of nature inside their organization and spend a decent amount of time and resources protecting their turf. Jobs was the central decision-making authority, and he simply wouldn't tolerate that type of environment. So, territorial fiefdoms had no chance of surviving in Jobs's pressure cooker.
Rather, what Jobs did was willingly accept potential cannibalization of some products in favor of others. Normally, in a large company, you have teams representing core products that morph into influential forces of nature inside their organization and spend a decent amount of time and resources protecting their turf. Jobs was the central decision-making authority, and he simply wouldn't tolerate that type of environment. So, territorial fiefdoms had no chance of surviving in Jobs's pressure cooker.