I don't think I had quite as deep an interpretation of this as you. Basically, the transcripted conversation went like this:
I don't know where the next life "prediction" comes in, but I see this really as simple as the issue with the Latin quotation. Like Morpheus says later in the film, "She told you exactly what you needed to hear, that's all. Neo, sooner or later you're going to realize, just as I did, there's a difference between knowing the path and walking the path." Just as The Oracle knew that "no one can tell you you're in love," she knew that no one could just tell Neo he's the One and he'd suddenly realize his potential. He had to walk the path, and make himself believe it through doing it.
In my mind at least, it's a nice, straightforward theme that makes sense. I'm sure there are some religious/Jesus themes involved here as well, but I just can't get into all of the other crazy, convoluted deeper stuff that goes into multiple lives and stuff. Besides, the dialogue in 2 and 3 stunk too much for me to get past that.