Comparing the iOS with the android so far, i don't think the ip5 gonna have major bump on hardware.
Meanwhile on the other hand, the android, with all those widgets and etc. At first, it was indeed laggy, because the hardware wasn't just there yet. But now? With all the quad core, crazy bump 2 gb on the RAM? Holy crap! It does look and is running smooth. Take example the SIII and the upcoming LG Optimus G, wow just wow.
Apple needs to be bold now, not just in legal action but also in developing the actual technology. They need to let their customers having more customization, not just wallpaper and home lock screen picture. Example : Widgets, they need to start developing iOS that allow widgets, because that will give each iphone user independence on how their iphone should look and function.
A business man might need to see how his stock is doing in real time, or checking his appointment with just unlock the phone and then "ah there it is"
Or maybe a student, who loves to see youtube video can just search using the youtube widget, showing small video result, tap on it and it will go to fullscreen automaticly.
Or for someone who loves the original iOS look, they can just remove the widget, as simple as that.
Only then Apple will realize that incremental and sufficient bump on the battery capacity, RAM, processor and also software overhaul are indeed needed. Just like what is now happening with Blackberry in prepare of Blackberry 10 and it's look as if they are starting from scratch. And they are actually doing it just fine.
Meanwhile Android, open source, many users actually helping in developing it, like cyanogen, or any other trial and error users. They develop, in each release, allowing users and producer to choose which one suit their hardware capability. And actually hiring or even just donating for making the OS faster, snappier and less RAM hogging.
Apple also need a trademark software just like blackberry with their Blackberry Messenger, or android with their google related software. Not just design wise, because design will always changing, just like cars.
All in all, just my opinion.