Apple are fulfilling the needs of most if it's users and making lots of money for their share holders.
If they wanted to, do you not think they had the money and technological resources to release the most advanced phone know to man? They don't because they don't need to.
If you can make more money than the US government has then your business is doing something right.
Extra ram, high res screen, swanky processors mean nothing to the majority of phone users. I would go as far to say that most people who have an iPhone or another smart phone don't have a clue about half the features they have.
So why is a company going to add even more features when they can make the same amount of money by having average features that suit the majority? I would say I am a very tech savvy person, I am more than happy with the features of the iPhone and have been very happy with the level of support and new features that have been added whilst I have had it. I don't care if they came up with the changes themselves, got them from copying other phone software or the jailbreak community. I'm a grown up, I don't need to look over someone else's shoulder and tell them my phone is better than theirs because it does x or y. What does it matter if Apple, in your eyes have played catch up to your choice of phone, if you chose android you chose android why are you still comparing to the iPhone and vice versa?
For steadfast android users and apple haters, I should imagine they get annoyed by apple catching up and adding features they have on their phones as they have less and less to claim their phone does that the iPhone doesn't.
Innovation, no matter who is doing it is only good for the consumer as we all get better products in the future.
So if you don't have an iPhone or apple products, what does it matter if they don't fit your technological needs, buy something else.