By your standards, freeze-drying a turd and painting it blue is an innovation. New and useless doesn't mean innovative in this context. Bringing to market, having financial success is innovation. Why? Because Thomas Edison said so. If it doesn't sell or isnt widely adopted then it doesn't have utility, and if it doesn't have utility then it isn't successful.
I totally agree with you. The term innovation is loosely tossed around everywhere when it's essentially meaningless. All it means is a new product or idea. I can say this: Apple made the iPhone 5 out of aluminum and it's now much thinner and lighter and call that an innovation. The innovation def that you made is the one that should be adopted universally.