I see alot of clever manipulation of fact by Apple here...but that's to be expected at an Apple event. Pretty much any company will do that...they want to set a positive tone, so when they don't have something positive and factual to tout, they manipulate numbers to create it.
The iPhone is a great smartphone...no doubt. It's just not the best anymore, plain and simple. People buy a smartphone because they either need or want a smartphone, they buy an iPhone because it's the prettiest of the smartphones. There is no longer any justification for paying the higher price for the iPhone outside of appearances. That's the most interesting aspect of this unveiling, to me at least...at the iPhone 5's launch, there are already better phones available. This is, I believe, the first time Apple has found itself in this position.