I take issue with this tired phrase (and its not specific to apple). What exactly are people thinking, a companies NEWEST product would be created to be WORSE than the previous models?
So while the iPhone 5 is "the best iPhone yet", i don't think any HONEST Apple fan could say "This was the best Apple could do".
Lots of the threads here seem to think it is worse. Look at the threads of folks saying they're going back to the 4S.
Meanwhile, this it is a pretty awesome phone. What else could they have done to make it better? At least with the hardware. Its a balance between size and power. They came up with a much more powerful phone, with LTE thats even smaller, thinner, lighter, despite having a bigger screen. Seems pretty awesome to me.
iOS6 is different. You could argue forever about adding in tons of new features vs. trying to hone a few features. To me, its been a decent, reliable update. Not revolutionary but fine.