Was that really the point? If so I don't get it. Change is good. Change is the norm. IT folks shouldn't be saying no to change - they ought to be able to accommodate constant change and adjust their deliverables and working methods accordingly.

If the Pencil analogy is supposed to correspond to software development then perhaps the problem is that the pencil maker started out with a waterfall-style, fixed scope approach when the project might have benefited from a more iterative approach. Agile Principles emphasise that change is to be welcomed, even late in development and should be coupled with good communication and working closely with the customer every day.