A few key points here that I think we should all keep in mind...
Yes, WE are the "geeks" who sit around speculating about what specs the new iPhone will have, but while we may be the most avid smartphone (be it iOS, Android, etc.) around, we are not the core demographic that Apple markets the iPhone to. That's part of what makes the iPhone so "magical". It appeals to such a broad audience. Who do you see walking around carrying iPhones these days? Spoiled pre-teen girls, 70 year old grandfathers, and everyone in between. The same could be said for Android devices, I suppose, but honestly, I don't think that any smartphone has obtained the level of cultural impact of the iOS devices.
If you leave "us" (the Macrumors, forum browsing, speculating, hardcore fans) out of the picture, you will come to realize that the general public, as a whole, is not very knowledgeable about the smartphone world. Technical specs, mean very little to most people, unless it's something that wireless providers have been pushing as the next "big thing", like LTE. Mr. Schmoe doesn't know how LTE works, he just knows that it's faster than that horrid old 3G technology, and therefore better than 3G, all because the commercials told him so. You say "But Joe, this shiny new Samsung Galaxy S2 is better than the iPhone is several very important areas", and start going all tech geek on him. When you're finished, Joe will ask "Yeah, but will it still do Facebook?" or "Yeah, but will I still be able to play Angry Birds?".
The majority of people purchasing smartphones want a phone that "just works", and this is the area where Apple has excelled above all others. Interface and ease of use. I can't seem to find the study, but I remember reading an article a while back that stated a surprisingly large (to me anyway) percentage of iPhones users had never upgraded their firmware since their phone was activated. This means they could care less about new features, new notifications, etc.
So what does all this have to do with "Shock and Awe"? The Macrumors crowd may care a great deal about knowing every detail about whatever new iPhone that will be released. Yes, most of us know that more megapixels doesn't mean a better camera, but to most consumers, more = better. Slap a new camera in there, perhaps a better camera in the front, and add a little more processing power, and iPhone 4 owners will still be lining up in front of the Apple stores a week ahead of time, paying outrageous early termination fees, just to have the newest iDevice. LTE or no LTE, Apple will sell millions of iPhone 5's, or 4Gs', or whatever they call it. Bigger screen or not, they will sell millions. Is it the most innovative approach? Certainly not, but it seems that Apple is willing to play their best long game. While everyone is rushing out the newest, greatest LTE devices on the market, Apple's researchers are sitting back making tiny little adjustments here and there, in pursuit of perfection. Could Apple have slapped an LTE chip in the new iPhone? Of course they could have, and who knows, there's an outside chance they may still do it. If they did, I would imagine that after a few hours playing with our awesome new smartphone, we would all take to the forums, bitching about how our battery life is terrible and asking Apple how dare they release a phone to the public when it obviously wasn't ready.
