Let's not go into a fight about Google vs Apple, but consider the landscape.
1) It is interesting to note that, different from the desktop market a decade ago, there is no monopoly by a single provider for smartphone tech. This means that the upcoming challengers try to challenge using the same tech rather than come up with something really innovative. That there is no monopoly in this space, might actually reduce the speed of innovation! These parties are happy to compete with each other on familiar grounds. To me this comes across as a gentlemen's agreement in which knights establish the boundaries of their fight. Google says: it's gonna be phones, don't be afraid we come with weapons that you're not anticipating.
2) If we limit ourselves to smartphones, what would real innovation look like? For me it's twofold: a) getting rid of the other things in my pocket. I currently carry: keys, a wallet, a public transport card, a customer loyalty card, a squash subscription card, and a driver license mainly as ID. b) never worry about charging. The former can solved by actually making use of the existing technology. The latter needs a wireless charging infrastructure that works on a distance and a few R&D years (http://www.wi-charge.com/).