We have better smartphones because of the iPhone (Visual Voicemail, a browser that displayed HTML just like our desktops, a trustworthy online store to buy apps for phones) We got a better iPhone because of Android (cloud syncing, usable notification system, multitasking.) Competition between Apple and Google drove better smartphones more than the open source community. The open source community helped raise the bar but it isn't the primary driver. Battery tech and chip manufacturing processes also drive smartphone quality more than the open source community.
Better hardware drove better routers; N standard, on-board USB ports for printing and NAS, better chips for improved power efficiency. I really haven't seen any new software features for non-geeks (90%+ of the population) on routers in several years.