Those that complain that Apple has "lost its vision" are apparently new to the world of Apple. If you look back at the history of Apple over the past 30 years, Apple was never as successful as it is today. Granted, Apple had amazing success with the iPod series AND Mac owners loved their Macs. But, Apple never became so synonymous with innovation until the iPhone came out. Prior to that, Apple was a known and respected brand to many, but still not a company that could so quickly impact millions of consumers like it can today. As far as I can recall in my 30 years of owning Apple products (going back to the Apple II plus, Mac SE, etc), there were never hordes of customers outside of Apple stores when a new iPod or other Apple product was released. This fanaticism with a new Apple product really exploded with the first iPhone, the product that many argue is Apple's most innovative product to date. It wasn't just a better phone, it massively impacted the direction of cell phone use. So, if you're expecting Apple to re-create the Iphone phenomenon every year... you'll be sadly disappointed. Look how long it took Apple to get to the iPhone. Give Apple a break. It is a great company.... but not a miracle worker. Just like with the OTHER Apple products over the past X number of years, it doesn't have to be cutting edge. It just has to be great.
As well, if you think that making different sizes or versions of the iPhone is Apple "giving in" - then I guess you're ignoring the fact that Apple has almost always had different versions / sizes with most of their hardware products. How many iPods are there? Just one? No, there are several sizes and shapes. How about with their laptops? Is there just one to choose from? No, there are several. How about desktops? Again, several to choose from. Although making a cheaper iPhone may cut into profits, a cheaper iPhone WILL meet the needs of a particular consumer that can't afford a full-blown iPhone, just like not everyone can afford to buy a Touch or the best MacBook Pro. Not everyone works with the same budget or has the same need. Some people also like smaller vs. larger. Look at how many consumers LOVE the smaller iPad. A customer that is satisfied with a smaller iPad is still a happy customer. They just may be a customer who has a smaller budget - or who prefer something more portable. Apple is meeting the needs of consumers, regardless of how many models / versions there are to other phones. Having different models / versions / sizes is not bad, and it isn't giving in. Again, I refer you to the history of Apple and their many other products.