True dat. People tend to make Apple's products out to be revolutionary. They are in the sense of the first generation. Everything after that is just incremental updates.
I guess in some ways I don't like the term "incremental update" to classify it, because in a programming sense (I work in software), incremental updates usually only add a feature or two. Swapping out the CPU and GPU in a phone is akin to rewriting the back end (processing portion) of your program!
Thinking about it, I wonder if we should have expected the iPhone 4S to be an internal-only upgrade. If we look at the iPad 1 to the iPad 2, we'll see that it was very similar. The only difference was that the outside shell changed, but the screen remained the same. The biggest differences were all external.
I think that's also why people stating that the iPhone 4S would be a flop are silly. When I was standing in line for the iPad 2, there were plenty of people there
with iPads that were upgrading them. Considering that an iPad is more of a secondary consumption device, I think that is pretty significant.
Although, I do wonder if the A4's PowerVR SGX535 held the graphics back a bit. I was playing Dungeon Hunter 2 on my iPad the other night, and it's kind of laughable how bad the models are. Humanoids literally have wedge-shaped heads to give them the appearance of a nose.
EDIT:
Although, there are some games that have increased graphics for systems that support it... such as Infinity Blade or Real Racing 2 HD.