Absolutely, the market is moving fast and Apple seems to sleep. I know they always have their own timelines, but now, they are not alone in the competition. A recent review in engadget says the Galaxy S2 is outstanding. Meanwhile, apple releases a white iphone 4
You have to remember, though, the different market Apple is catering to at this point and the percentage of people in America that make up the market.
The Galaxy S2 is amazing and it's going to be the phone I upgrade to the instant it comes out over here, however, most of America doesn't think like me. Technically, yes, the GS2 is going to be one of the, if not the most powerful phone when it comes out, however the average consumer doesn't need that, nor will look to that to fill their needs of a phone.
For the average person, facebook, twitter, angry birds, and other applications of the sort (along with a good camera and music capabilities) is what they want and they know the iPhone can give them that; just look at the commercials out now about "if you don't have an iphone, you don't have X" and that's what's selling the phones.
We "tech savvy people who post in message boards" make up a very small portion of the population, and because of this we see things a lot differently. However, you have to dumb yourself down and look at it from an average consumer. The iPhone is prettier, has all of these "great" features that Apple has put in it, and it's made by Apple. That's enough to sell to the average consumer.
Same reason the iPad 2 came out with what it has now; it's behind already in specs and well... Android phones that are already on the market are just as powerful, which says a lot about what Apple is doing. They're playing off of the brand and the quality of the machine, not the technical specs.