The only progress it has really made is retina display and app store. Those two are game-changers.
The "retina display" was not new. There were Windows Mobile phones with over 300 PPI when the very first iPhone went on sale. E.g. the Toshiba Portege G900 and Sony Ericsson Xperia X1.
Those phones even used the term "print quality" first, which is why Apple came up with a new marketing term for the same concept. They sure didn't want to say they were the third device in the world with a print quality display
As for the app store, it did bring convenience to iPhone users.
Like many other smartphone users before Apple came along, I had an account with the Handango and GetJar stores.
We were not missing too much. My WM smartphone in 2006 had Google Maps, voice control, medical and notetaking apps, browsing with double-tap zoom (Netfront), weather widgets, TomTom navigation and Slingplayer over 3G.