Earlier quoted context omitted.
Apple does plenty of iteration, just in a different way. Think about copy and paste on iPhone, MMS messaging, multitasking, etc. They work depth-first rather than breadth, so instead of dozens of half-working features, you get one or two complete features. I think it opens Apple up to more criticism, especially combined with their secrecy, but the criticism and even trolls only help contribute to more buzz.
I'm looking at the Dock at the bottom of my MacBook Pro and I can't help but think that most of the apps are half baked and most of them I don't even use. I've replaced Safari with Firefox. I haven't fired up iChat in a while because I just use GMail chat instead. iTunes is really wonky when you want to play music off of an NFS server. I've never fired up FaceTime or PhotoBooth. The X11 app is so buggy it's ridiculou…
I prefer Safari over all other browsers, due to speed and better UI, although it loses on security to Chrome. Firefox, meanwhile, didn't have Retina display support until half a year after that MacBook Pro was released, still doesn't have disappearing scrollbars, and has no smooth zoom, and I have many other sorts of complaints about it.
iTunes, despite all the various crappiness, doesn't have much good competition and usually works well. Playing music off an NFS server is not a normal use case.
Preview is a brilliant PDF reader.
I use Gmail chat, but if I weren't using a Mavericks beta with broken Messages.app, I would also be using that for iMessage. FaceTime also works well.
Mail.app is pretty great; it has some flaws, but is better than most of the competition not named Gmail.
Terminal is a great terminal app (you'd think this wouldn't be hard to achieve, and I think iTerm is roughly on par now, but the latter used to be quite terrible).
edit: oh, and QuickTime Player is nice; might not support all the codecs of other players, but the seeking/frame stepping is nice and smooth, compared to VLC which can't step backwards at all.
YMMV, but I think the suite of default Mac apps is not bad at all.