1. Steve -> Engineer: Whats with the delay?
At this point, almost nothing the engineer could say shows him in a good light - "sick" doesn't cut it at the power difference here. You only talk to the CEO once in a decade, and his experience of you is "doesn't deliver"?
2. Engineer -> Steve: I evaluated it. It sucks. I haven't written back yet as it's not a high priority.
3. Email from Steve -> Unfortunate dude: No interest.
1. Steve -> Manager: This guy e-mailed me again, does this need to be dealt with?
2. Manager -> Steve: It's a good algorithm, but the guy's been demanding and impatient, and with everyone prepping iOS/iPhone 4 for WWDC, Engineer just hasn't had time to look into it.
3. Steve -> Dude: No interest.
Specifically, I highly doubt that Steve Jobs would speak directly with an engineer about a potential acquisition of a potentially useful algorithm. I doubt it was ever really on his radar at all after the first 30 seconds where he read it and forwarded it off. That's the entire reason managers exist.
In general, it's not a good way to get this guy to give you a green light on getting hired/acquired.