I like the juxtaposition between this article and the one immediately before it:
https://www.macrumors.com/2016/05/11/iphone-decline-affecting-apple-suppliers/
Take your pick folks! Apple fans please go this way, critics go over there, please!
There are always reasons to take suppliers' business forecasts with a grain of salt. Between Apple's practice of redirecting business to alternate suppliers and the fact that it makes no strategic sense to predict an upturn when it would be scoffed at by those spouting the current "conventional wisdom..." It's much better at this point to under-promise and over-deliver.
Meantime, I find Gruber's article to be the first really exciting iPhone 7 prediction I've seen. I'm not sure why - individually, all these features have been discussed/debated before. Maybe it's just a matter of presentation? Maybe he's made me consider the engineering implications a bit more deeply?
Does integrating TouchID into the display also mean integrating Home button functionality, or does it mean having the remaining edge-mounted buttons pick up the Home function? If so, there has to be a higher level of context-awareness, perhaps new gestures, higher Siri functionality... who knows for sure? The cascading list of dependencies could point to "innovative" change, perhaps a sense that features we've taken for granted are dealt with in a more "magical" manner.
Remember Palm Pilots and Palms, with their dedicated sections for graffiti input and display (maybe you don't)? While not quite as clunky as the dedicated keyboards of Blackberries, the notion of such dedicated-purpose areas always seemed wasteful when compared to what could be accomplished by having an edge-to-edge touch screen and virtual buttons. Even when Palm III came along, with it's edge-to-edge touch screen... they still roped-off a fair chunk of it for dedicated purpose! The full-screen/context-adaptive approach of the iPhone, with just the single Home button on the face (instead of 5-6 physical buttons) was quite a nice change. Pushing physical buttons off the face of the device seems a "last frontier" kind of change to me.