I've also had nearly every iphone and now have the 5 and although I like it and it is the best they've made so far imho I totally agree Apple have dropped the ball.
They made their mark because it was innovative but (a bit like PC Vs MAC) if they don't start developing as quick as the Android phones long term I'll have to consider the move as they'll fall further and further behind.
I have nearly 200 apps though so that is the main reason for me holding out and iOS does just work where as I find android a much clunkier OS.
Still I have 16 months more to go now before I change hopefully they will start innovating again!