Re: lack of innovation
It's not just lack of innovation - it's negative innovation. (Is there a proper word for that?)
Final Cut Pro - once an industry leader, now a toy that sent former fans scurrying back to Adobe.
OS X Server - likewise. And supporting hardware was killed. (I don't think the Mac Mini counts, for non-toy users.)
iPhoto - features keep disappearing or being moved.
MobileMe - all your websites gooooone.
iCloud - the only cloud with data you can't share with friends and family.
Maps - dear god... To be fair it's getting better, but it's still way behind Google or even Nokia.
Apple TV - lolwut?
Mac Pro - not refreshed for a long time, and no longer available in the UK Mac Store.
So billing a thinner iPhone or a smaller iPad as the Best Innovation Evah - while Samsung run ahead with the S series - is the least of Apple's failures.
Apple in the 2000s produced a steady stream of consumer game changers - iTunes, podcasts, iPod, iPhone, app store, Macbook Air, iPad (just), and respected pro-grade software. So the current state of play is a sorry picture.