He knew exactly what he was saying. Clay is clearly the superior talent, by far and away, and Simon has been saying all along "You have a great voice but you just don't fit the image of the American Idol." He can sell a guy like Ruben. I just hope he lets the young man sing what he likes to sing and doesn't try to complete the picture he (Simon) has in mind and turn him into a "rapper".
Personally, I've never witnessed manipulation like this on what was billed as an honest reality tv show in my life.