Apple doesn't have enough software developers and expertise to continue iOS and Mac OS upgrades -- that is obvious.
Pages and iBooks are crap software now -- not even comparable to the freeware given out with new Windows PCs. And, they're abandoning software development for movies, photos.
Adding a new OS for the iWatch is not going to help.
Perhaps they are taking on too much of the philosophy of Jonny Ive where simplicity and elegance trump functionality. That is, a...