If the average user is, say, one of my parents, the answer is probably "no, they are not waiting for innovation". They'll likely appreciate it, but if they are left with a working desktop that doesn't limit them in doing what they want to do, they are happy. Windows XP still suffices for most people, that pretty much sums that up I'd say. The bigger problem is, I think, that those innovations distract from improving existing features to stability, and oftentimes new features are shipped before being mature. Ubuntu, for example, has been pretty bad at this, shipping PulseAudio before it was complete enough to be included in an operating system. The result is that my sound didn't work well at all in the first release PA was included in so I'm left with a desktop that has advanced features and nice innovations... on paper. In reality I have to fiddle around with it to make it work - if I can get it to work at all. Hooking up a monitor to my laptop also doesn't work quite as smoothly as it should (although with Ubuntu 9.04 it does actually work for the first time).
It takes time to get your software stable, mature. Innovating is nice but if you focus on one, you're probably going to spend no time on the other. Besides, the target audience for innovations isn't quite as large as the target audience that want a stable, working desktop.