To me there is nothing wrong with iPhone performance and a lot more wrong with the device design itself. The iPhone 7 still has huge bezels, especially the Plus. The non-Plus model has a fairly low resolution despite many Android phones showing you can have a 5" 1080p display without huge hits to battery life or device dimensions. Take the Oneplus X from late 2015 for example - it's only a few mm wider than the 7.
Both models have protruding camera bumps only because Apple refuses to make them a tiny bit thicker. Nobody asked for super thin phones in the first place and all smartphone manufacturers are equally guilty about this though. I guess Apple are banking on people putting a case on them, making them even bulkier.
Placing the home/fingerprint reader button at the bottom is a pet peeve of mine on large phones, Samsung and Apple both suck in this respect. Having it on the side like Sony or in the back like many other manufacturers makes it far easier to reach when you have 5.5+" displays as your fingers just naturally end up in those places. When it comes to design I feel obscure Chinese Android manufacturers are doing more elegant looking and easier to use devices than Apple.
Apple has also been doing the bare minimum for storage space and RAM. 2 GB on the iPad Pro 9.7" and iPhone 7 is in my experience as an iPad Air 2 owner barely enough. 3 GB on those models would be the sweet spot and then you would not need to worry about refreshing browser tabs or apps reloading when switching back and forth. For storage they are really nickle and diming when several year old phones at half the price come with 64 GB stock.
They can try to coat removing the headphone jack as "looking into the future" but it provides literally no benefit to the user. You are just going to need adapters or use wireless headphones. Speaking of wireless headphones, I bet that in just a few months people will start finding those Airpods on the street because they look super easy to lose without any kind of string tying them together. Hell, some thieves will probably just snatch one straight out of someone's ear and make a run for it.
I really wonder if Apple will churn out a 7S next year. If they were really reaching for things to promote in this keynote, they will have even tougher time then.