They should consider creating making a LAN version of game streaming, you have a small thin client hooked up to your TV but all all the work is done by your beast desktop in the next room. The biggest hindrance to their current setup is that most people don't have their computer hooked up to their TV because they use it for other things than just gaming. They could call it Steaming (Steam + Streaming). :)

The whole point you are making happened many years ago, arguably before Steve came back. Every "innovation" Apple has had over the past ten years was someone else's idea given just enough refinement and advertising to get consumers to like it.

Smartphone, that was IBM, Microsoft, Sony, and RIM long before Apple. Apple just managed to consumerize ideas from the corporate tool world. The same goes for tablets. Microsoft never moved their primary UI to be compatible before now with touch and stylus interaction, but Gates kept evangelizing the concept until Jobs actually went and had a regular OS trimmed and locked down to where touch was easy for the uninitiated. Even the iPod was nowhere near the first or best MP3 player, but Apple managed to leverage iTunes and advertising, never superior hardware, to sell lots of hardware. Ultrabook (MBA)? Fujitsu, Sony, NEC, and Toshiba had powerful fully spec'd ultra compact laptops available overseas for 5 or 6 years prior (Dynamism was the primary importer for US buyers).

Apple is not losing their edge, they are simply having to compete now that other OEMs and software developers have had time to develop consumer, rather than professionally oriented products, in markets which have been gestating for several years. Apple has never done well competing on even ground.