I think the problem lies more in the fact that everyone else is moving forward while Apple isn't doing anything new in hardware design. I'll give you an example -- the Samsung Galaxy S6 Edge came out last year. That was on an S-year for the iPhone as the iPhone 6 redesign had only happened a year prior. Fast-forward to now -- the supposed redesign year (given Apple's tick-tock redesign cycle) and Apple is STILL using the same design. And the added features for the iPhone 7 (save for the dual camera) were just playing catch-up to what other manufacturers are doing.
I upgraded from a 6 to a 7 and although I think it was a good upgrade software wise and some hardware(water resistant, home button) it didn't feel like going from the 5 to the 6. I mean the 7 is wicked fast and it's buttery smooth. Definitely a difference from the 6. I also like the fact it's water resistant because at my job I'm outside a lot. Been raining the last couple of days and I appreciated I was able to use my iPhone in the light drizzle with confidence.
For me the iPhone works for me. Like I said I hardly use Apple apps / software on any of my hardware including my iPhone. What is surprising is Google apps run better on iOS than most Android devices out there. Not only run better but look way more crisp. However now with the Pixel it looks to be changing. Playing with the Pixel for a couple of days I would say Google apps run buttery smooth and look crisp and are baked in. I wouldn't say the apps on the Pixel are better than in iOS but pretty much equal.
I'm sure there are more people like me who prefer Google services over Apple. I prefer Googles technology and I think it's a fact that Google technology beats Apple. All the privacy bull crap and Google looking over your shoulder is exaggerated. How many still use gmail and Google as your search engine?
However I think the iPhone wins in hardware.