Innovation changes the game; innovation is not incremental technological development
So, lets get this right. There's like this screen thing which is really good (i.e. the retina screens fitted to all iPhones for the last several years), and the "innovation" is fitting a screen which is really good, but three microns thinner.
Shirley innovation is developing a truly 3D experience. Or one which at least emits light outside of our visual range. Or something *innovative*. Just incrementally enhancing a screen to be "a bit better" isn't innovative.
Innovation is somewhat intangible. Innovation in this context is something that's game changing and the whole market follows. The original iPhone was staggeringly innovative. Never before had we seen the gestures or such a simple interface. It was an utter game changer as copied by all subsequent manufacturers. It was so innovative that it immediately lent itself to the tablet market from which an entire industry was born.
The fingerprint reading home button. That's innovation. (and you can easily use proper strong pass phrases as opposed to 9999 numbers which everyone can see you enter)
The current incarnations of iPhones are just plain "meh". Slightly bigger. Yawn. Slightly thinner. Yawn. Slightly better camera. Yawn. Slightly more breaky in your pocket as a result of this "innovation", yeah right. No doubt the next one will be a screen that goes to the edge which you can't grip tightly.
And the watch... What's the point of a watch that can't stay permanently attached to your wrist no matter what you do? Oh, leave it in the swimming pool locker or on the beach to be stolen... You want to use it to log your swimming exercise, water temperature, etc., but you can't. You couldn't take it camping or hiking as the battery's too small. That's the definition of a fashionable trinklet.
Agreed, it's early days for the watch, but it's nowhere near as innovative or game changing as the original iPhone or iPad.