How is organizing your music "creative" and not a part of its "consumption"?

It's as simple as "doing" (creative) vs "using" (consuming).

It's the difference between, say writing notes (creative) and watching TV (consuming).

It's my understanding that this is the view that Steve Jobs took when creating these devices.

Your logic is wrong, because iPhones and iPads are creative devices where photos are created. Therefore, your understand of Steve Jobs intentions are wrong.

Yeah sure they are trying to play catch up now, as they underestimated how they would be used, but bare in mind first gen iPads did not have a camera.

I am probably too plain for this, but to me there is usually very little creativity involved in re-ordering a playlist. The rather massive replacement of radio DJs with automated systems is a testament to that.

Creative might not be the right word, but it's the simple case of "doing" vs "consuming".

If I remember rightly, Jobs was adamant that people wouldn't want to organise their playlists on an iPod, so that feature was never added.

This isn't an isolated case though, it was a his vision of how he intended these devices to be used by consumers.

This vision means every device has a particular purpose, which ultimately means you'll need to buy a Mac too.