I thought I remembered a story about Jobs not allowing the Newton to be shipped until it actually fit in his coat pocket? Was that someone else?

Jobs left Apple in 1985, the Newton started development in 1987. John Scully was the executive excited about the Newton. Even though it was profitable, Jobs killed it on his return.

I haven't heard a story like that but if I were to guess it would be Jeff Hawkins from Palm. Because while the Newton while cool, it never reached pocket size.