Nail on the head. SO many people don't get this concept.
The biggest leap in iPhone history came between the 3GS and the 4. It came because suddenly there was competition in the smartphone market and parsing out overdue hardware/software features like MMS and landscape wouldn't cut it.
Apple felt a legitimate threat in the marketplace and dropped the hammer with a device that blew everything else away. HD Recording, Retina display, Facetime...it was Bob Beamon-esque.
Competition is a good thing. It pushes Apple to improve and be better. The WORST thing for Apple is fans blindly ripping other products sight unseen and telling Apple they'll automatically accept whatever they roll out as superior.