I've read the patent and while you are technically correct, the effect of the patent is to grant them a monopoly on the feature pinch-to-zoom on a smartphone with a touch interface.
The end result is that no one else can implement pinch to zoom on a smart phone.
The patent is also overly broad in that it covers all multi-touch touch screen devices. So that whether I use an infrared overlay or a capacitive screen it is still covered.
No one else can implement pinch to zoom, so what? Is pinching the only way, or even the best way to zoom? It may seem like it is the best and most obvious way right now but that is only because Apple popularized it and made it ubiquitous. In the future someone may (gasp) innovate and come up with a better solution, that would in hindsight seem even more obvious.
The end result is that no one else can implement pinch to zoom on a smart phone.
The patent is also overly broad in that it covers all multi-touch touch screen devices. So that whether I use an infrared overlay or a capacitive screen it is still covered.