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.
The innovation is that Apple takes an existing product that hasn't found its market, refines it and turns it into something that consumers want. This is what they've done since the original iMac, and what -I believe- most Apple users expect from the company.
Fees, not taxes. Fees are much more fair then taxes as everyone pays the same. And fees aren't taxes so you can raise funds in a fair manner without raising taxes. If everyone has to pay $10,000 in fees then that's 2.5 trillion raised, all fairly.
$10,000 is chump change for the very wealthy. A $10,000 fee would push millions of people under the poverty line. And what will we do with the last third of the population who isn't able to pay $10,000 in the first place?
Except that at least one of the people interviewed had the current 4S, and was still blown away by the weight, look, and performance of the identical phone handed to him. These weren't people unfamiliar with iPhones.
Jimmy Kimmel's show is not a news show. They do this kind of staged video all the time, because obviously interviewing people on the street saying "nope, it's not the iPhone 5" isn't that entertaining.