You're both right and wrong here. The new 5s has some significant new features: the adoption of a 64bit processor is one and it will be interesting to see what new features this architecture supports; but I think it fair to say Apple have failed to meet expectations whether or not those expectations were reasonable.
Apple must realise that with Windows Phone, Microsoft innovated in how users interact with their device in ways many people, especially detractors, have yet to appreciate. The designers at Microsoft realised that some limitations in GUIs aren't logical, but habitual. The revisions in iOS 7 are purely cosmetic and this shows that Apple's designers don't understand what Microsoft did.
Microsoft are suffering for their innovation, look at the fuss about the missing start button in windows 8, but people will adapt in time as the new paradigm sinks in. Their implementation of this paradigm is incomplete, so there will be further innovation along this line.
As for the view in the mirror, you're completely wrong. New Windows phones are available in screen sizes from 4" to 4.8" or 6", if you count the soon to be announced Lumia 1520. You can go for a colourful 520 with interchangeable covers, or 925 unibody design, or a metallic Samsung Ativ S. In cameras, you can have a standard 5 megapixel shooter like the Lumia 520 to a 8.6 megapixel Lumia 925 to a 41 megapixel Lumia 1020. Apple only offers one screen size, one camera and only now offers choice of colours.
If you don't like the iPhone aesthetically or it is unsuitable because its screen is too small, you're stuffed with Apple and that is how you can spot a clear design philosophy like Microsoft's, from a rigid one like Apple's. Unfortunately - and I mean unfortunately - Apple have failed to adapt this time.