McJobs in America: What exactly does "manufacturing" mean?

First this video (ht):



A couple of weeks ago, Matt Yglesias worried that Obama's push industrial-policy push for manufacturing could be more than election gimmicks and could guide his second term:

It is sensible for public policy to pay attention to the creation of great firms, to strength in specific sectors, and to the quality of the jobs generated by different economic models. But it should be obvious that the path forward for America is to focus on our strengths in information technology and media, and not compete with the Chinese for manufacturing supremacy.

Because ... the big money is not in the manufacturing of the widgets themselves; The Economist's chart on the breakdown of costs and profits serves as a classic illustration:

So, do we really want to bring back manufacturing, or ... And, BTW, remember what Steve Jobs said?

“Those jobs aren’t coming back”