To say the iPhone didn't innovate anything is crazy. The iPhone completely changed how phone operating systems work. Look at smart phones before the iPhone, and then afterward. Smartphones before the iPhone were clunky and didn't have great user interfaces. They may have had a lot of the features of the iPhone, but they were poorly designed.
Agreed if it weren't for Apple's vision, we'd be stuck on something only slightly better then the LG Prada in 2012. We'd not have Jelly Bean or Windows Phone 8. Thank god for Steve Jobs!