That's both the personal computer and personal computing.
In the interview, Kay says that we are doing boring, simple things with our personal computers (documents, web browsing, search) and that the supposed innovators aren't thinking beyond a fairly constrained idea of what people do with computers. He's clearly annoyed about the pop culture drive toward lowest-common-denominator and the resulting lack of opportunity for learning.
Kay has a vision for moving to a different way of computing both on a technical front, and on the user front. Users should become active learners: learning and growing in their use of the technology, but also learning and growing in their interaction with the world. This is where Jim McGee drew his connection to learning and knowledge work.
There is a potentially deep and rich connection between challenging knowledge work and technology. But realizing that potential will require different attitudes about how much time and effort we should be prepared to invest in learning. Organizations thinking about investing the technologies collectively identified as Enterprise 2.0 should also be thinking about what investments they should be making in the appropriate individual and organizational learning
Alan Kay is involved in the Viewpoints Research Institute, who are responsible for the $100 laptop and other projects related to innovation and learning. They really are rethinking the PC.