Apple's timeline for iPhone 5 has nothing to do with Verizon and everything to do with iOS 5 and iCloud. Those must be ready to go in any new iOS device.
I agree that what people in forums define as a "major re-design" is not what the average consumer thinks about. That's why "old" models like the 3GS & 4 are still selling like crazy. Those kind of sales numbers (measured in both units & dollars) imply that the tech forum definition of "stagnant" is also not universally accepted.
A miniscule minority of consumers wanted FM radio in iPods, cameras in the first iPad and better notifications in iPhones. You can make a list of features the iPhone lacks, but it's really the overall package that the average consumer looks at. Both current iPhones still "win" in getting consumer dollars.
I keep on repeating that we all have different sets of preferences. Choice is good. Buy what you want. You don't like notifications on "stagnant" iOS? Go buy a WebOS or Android phone. Just recognize that many more people are handing their money to Apple for their "stagnant" phone than any other phone.
Look at the title of this topic. People are already criticizing Apple for the anticipated shortcomings of iPhone 5. "It doesn't have 4G/LTE, a big screen, NFC, etc." Headlines will read: "Apple is falling farther behind." "What a disappointment." "New iPhone only Incremental upgrade."
Meanwhile, millions of people around the world will be lining up days in advance to buy the new iPhone. Where were the lines this weekend for the "un-stagnant" Droid Bionic? Were there any lines for the "hot" Galaxy S2? Why does Samsung keep on postponing introducing this hot new phone in the U.S.?
Personally I can't wait to get my first iPhone and dump my POS Palm Pre Plus with the great notification system. Its one saving grace is that Verizon was so desperate to unload these, they included the Mobile Hotspot feature for no extra fee. I use it to access data on my WiFi iPad and iPod touch.