I think the hardware is at a relatively good stage right now.
The two areas I think Apple really need to get to town on are:
1. iApps -- I really want to see
iTunes 4 with AAC and rendezvous. This has to be coming soon; I thought it would come out at MWNY actually! Long overdue and very welcome. iChat and iPhoto are very green and could use some major tweakage. iMovie hasn't been updated in forever -- but then, how much more can really be done, and how much more would ruin the simplicity of the program? And of course AppleWorks really needs some Apple work. I am fully de-MSed except for Office, and while I know it is unfair to compare AppleWorks to MS Office rather than MS WORKS, I still long for something good enough that I can ditch MS once and for all *insert gleam in eye*.
As an aside, I am disturbed about these inklings of rumors about converting iApps to for-pay programs. My god, people went berzerk over the switch of bloody iTools, and most people barely touched that. If the more-frequently used iApps were converted, god help the poor sap who announces it, as he or she will be hanged

However, maybe they will update iApps with "premium" services and features, and tie them into .mac ... They need to add SOMETHING to .mac before September, because there will be a mass exodus when people are expected to pay $99 (be it justified or not), and really, there was never a mass adoption, so.... I know I will only renew if the price is lowered or more good services are added, and I sure ain't talkin about Bejeweled
2. Digital Devices -- Where are they all? I thought the iPod was supposed to be the 1st in a line of products? Does not Apple want to extend its arm into Sonystyle territory? Or has the economy dashed their dreams? I honestly don't care what it is... DVR, camera, phone, the dreaded PDA, a letter opener, a pooper scooper....
But would Apple really release a new consumer digital device right AFTER the holidays? That would be odd, as such lower-priced techie gems have "perfect gift" written all over them.
So in conclusion

Give me iTunes 4, and I'll be smiling. That is ALL I am asking for, is that so much?
