The problem isn't Apple's lack of innovation. It's the ridiculously absurd expectations some customers have, often fueled by sites like this looking for clicks and ad revenue.
While there are indeed ridiculous expectations at times (micro LED for instance) on fansites, that's a result of Apple constantly claiming magical features in the past, plus the chestnut about how "Apple will do it right".
Outside of the forums though, the majority of people are simply looking for a good reason to upgrade. At the least, a new style helps. That's true for anything from clothes to cars. Apple has dropped that ball lately.
New and meaningful features are also incentives. I think Apple's done okay there with camera updates, faster TouchId, etc.
On the flipside, my teen daughter's friends are all avoiding the latest models without headphone jacks. Eventually they'll have no choice, of course.
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