the 5s (as well as all the other "s" models) aren't for the owners of a 5! You just bought that 5, thsi will be a "minor" upgrade. We see this everywhere, but when apple does it it's a travesty!
Cars get minor spec and feature improvements every year, but only get full redesigns about every 5. Toyota doesn't expect any 2011 camry owners to run out and buy a 2012. The 2012 is for those that maybe have a 2002 camry and need to upgrade.
Also, as to the "vastly" better android phones out there, i really don't see it.
I have an iphone 4s, my wife has a htc one s. My iphone is faster than hers at browsing most websites. Hers "hangs" frequently, in fact her fruit ninja was slower and had worse graphics, and on top of that, the game doesn't even start anymore, just hangs.
I do some web-app development here at my work; i have a nexus 7 and an iphone 4s(mine) for testing. The iphone 4s is faster running my javascript and rendering my webpages.
Remember the actual performance (end-user) of any device is a composite of two parts.
1) raw hardware performance.
2) software performance.
The new android phones have quite a bit of #1 (more than even an iphone 5) but take a big hit in #2. --
remember, android runs (for the most part) in a virtual machine (non-native bytecode) while all ios apps run in native bytecode. This leads to much smaller overhead on ios. Plus ios attempts to minimize active processes (why no true multitasking)
in my experience, the actual performance between the two is mostly a wash, despite the androids far superior hardware.
Where android is ahead are: Google voice, and google maps. Both beat apples offerings, though apple's maps, in my opinion aren't that bad, siri is nowhere as good as google voice!
Where ios is ahead is: Smoother overal interface, better touch interface (more accurate, can even interact with desktop webpages easily on my iphone without zooming)
so i think the improvements should be:
1) refresh of ui, not a huge change
1a) look on youtube for some ideas
1b) better "multitasking" control
1c) better text editing (android is better here) cursor movement, selecting
1d) improved notifications pull down (get rid of that linen)
1e) maybe an equivelent to osx dashboard for widgets
2) improvement in siri.
2a) improved performance (take some ideas form google voice)
2b) add some features (tie into more services)
2c) add 3rd party api for apps to hook into siri.
2d) better search results on siri (i.e. Looking for wallmart should list them closest to furthest, show thier full address including city)
2d1) i should be able to "open" the list that siri generated in a browser
2e) don't ask so many questions, if siri cant find a contact named "starbucks yes search for businesses named starbucks! If you can't find what i'm looking for, yes search the web!
3) improvement in maps
3a) keep filling in the poi data
3b) allow me to drag the map around during navigation and give me a button to "snap" it back to my location (so i can see whats near me)
3c) better searches (i.e. Show a list view of my search results, again with full address and phone numbers)