So the design team is getting Jony Ive'd: thinned out to the point of being very light, small, and svelte but incredibly useless?
Nevertheless (and all kidding about Jony's missteps aside), this happens, and it's generally a cycle: design leadership gets stale, and it's a good time to go separate ways amicably (which Ive and Apple did really well) and like a divorce, some lines get drawn and people align or just fade away and there's a period of stagnancy, retraction, and the like, and generally (not always), great organizations will grow the next leader or visionary from within that team.
The issue, of course, becomes when quarterly reporting cycles and other interests start to cut too much to the bone, but Apple has plenty of cash on hand and the broader market conditions may not actually mean this is as much of a "bad thing" as it sounds. Focusing on reducing product cost in design and in reducing design as a cost center in the business could be timed well with the market's needs for the next 2-3 years (at least?).
I have been less-than-impressed with a lot of the Apple design work as of late (both hardware and software -- cough, Stage Manger, cough, cough...reuse of basic iPhone 4 design with slight tweaks as "new", etc), but at the same time, most of it "just works" and that's what I do expect of Apple at the most basic. I actually don't want to notice most of what they make, because it works and is designed so well (aesthetically and functionally) that it blends into life.