Innovation these days happens around the edges, not necessarily in big step-function creation of new product categories. We remember those, they suck up all the oxygen and inspire a year of me-too funding of fast followers. You hardly notice it the daily innovcation, when it's happening in small steps. Just look at photo/image search, or improvements in low light photography or portraits, in translation, or voice.
I think Yegge suffers from the same affliction that actually afflicts Google: a reward structure for new launches, not for perfecting what already exists. Google's problem is often not innovating, it's trying to hard to do something innovative, rather than the boring stuff that actually matters to a lot of customers. I think Google Photos is a perfect example of innovation focused on solving the boring stuff. You can say it's an iPhoto clone, but photo storage and backup is a commodity, it's organization and maintenance that's the real consumer pain in that regard.
And as many noted, the irony of the complaint about copying competitors and lack of innovation, and then a feverish, almost religious pitch for yet another O2O gig-economy clone, like the numerous that already exist in China.