phone design has pretty much been perfected now and the only room for innovation is going to be on the software side of the UI and a better camera.

Strong disagree.
Phone design in one form factor has been mostly perfected, but even there room for innovation exists. More ports, more features- remember how the early Galaxy phones had IR blasters and headphone jacks? That could make a comeback. Or maybe make the phone 2mm thicker and put a battery that will last for days. Or make the phone 5mm thicker and put rubber padding around it so it's indestructible even without a case. Or do like the old Compaq iPaq and make dockable modules that add significant functionality (week long battery, small projector, full HDMI/USB suite, etc).

There's a bit of innovation happening with other form factors- foldable screens are being used in the most boring and basic ways possible. I want to see something more like the Global Communicator from Earth: Final Conflict- little stick of a device that has a pull out video screen that can be pulled out to various sizes.

I think there IS room in the market for innovation, it just requires companies that are willing to a. take the risk and b. commit to better software support than Samsung.