I think most of the DSLR innovation is now done.
roblem is, Canon is driven by product differentiation, max. profit (lowest cost & highest prices) and they are so conservative they probably don't think about real innovations, even not with a cpu as fast as their digic5 (or 6).
i might be wrong, but every company is driven by those assumptions. Nikon has not the upper hand in terms of sales for the entry level nor probably the uber-pro (D4 vs 1DX), so in order to steal Canon's share they offer a more extensive set of features with their cameras. As long as Canon has the upper hand they will never make a revolutionary product, only incremental changes. Sorry for being captain obvious.
Also I'm surprised how long this conversation has been going, there is a new entry-level model every year that will entice only the beginners that dont have a camera yet. There haven't been any changes with the 650D but companies that have the sales upper hand do that (iphone 4 and 4s anyone? im sure there are people here who had both). Nobody here is gonna buy the 700D unless as backup body, if you want 7D features in a backup body you know what to buy.