That's a one-sided view, much like the opposing view from a design basis.
I design product and I design it from scratch with both considerations in mind. The size, shape, what's saleable comes first, the concept if you will - then you start making it work as best it can -
IF a cosmetic design element is restricting the performance then you go back and re-appraise, alter, adjust or sometimes even redesign completely. Good design is mixing engineering, cosmetic design, form and function until they're all working cohesively as well as can be for the concept.
I don't, however, think Apple have been as good at all this recently as they once were. Many competitor's phones (ignoring the watch for now) are looking better, feeling better and offering more. Not just Samsung as the main competitor but even the Chinese copycat brands are starting to "out-Apple" Apple. -
Both of these from the main Chinese players (Huawei and Meizu) address the same issues as Apple with regard to "thinness", antenna bands and camera bumps (or lack of on the Huawei's dual lens offering) and do so in a similar (copycat) way - but arguably do a better job of it than the iP7 leaks have shown Apple to be doing.
The physical design of the once great iPhone 3G, 4 and 5 seems to have been lost in the 6 and proposed 7 for the purpose of thinness over all else, looking at the whole seems to be being overlooked for that one detail.
iOS is still just about slicker than Android but it's much closer than it was, iOS is starting to get more awkward and cluttered yet still not offering much user-adjustability into the bargain, Android has been getting far more refined.
I just think Apple need a kick up the backside somehow or they will start to suffer. Many a large company have let complacency be the death (or at least wounding) of them by thinking they can do no wrong and don't need to keep ahead of the game. That loyal fans will just buy anything with their logo...