I don't see what all the fuss is about. A modern smartphone utilizes roughly 9938273478392 technologies that neither Apple nor Google invented.
Apple patented making the phone in a usable shape, as well as touching it. (Touch... Swipe... whatever)
Anyone is free to make a smartphone that uses the useful 9938273478392 technologies, as long as it doesn't come in the highly inovative usable shape or use the amazing breakthrough of being able to touch it.
Google/Motorola it appears, has the patent on the breakthroughs of talking into a phone, as well as the technology of having your *smart* phone actually display usable information (woah, who came up with that?)
Based on those amazing inovations, these companies are completely encouraging other companies to compete using the 9938273478392 technologies- just as long as their users can't touch them, speak into them, come in a usable shape, or display any information.
Whats the problem?
The patent system is encouraging innovation as it is supposed to. As we speak (errr... type) I'll bet Google is hard at work innovating new technologies that will enable them to compete developing a 'shapeless blob' technology as well as elite 'hover' technologies so that your shapeless phone can hover near you so you won't have to touch it.
Apple is no doubt hard at work developing technology that can both read your mind, and inject information directly into your brain. That way you won't have to talk into your phone or have it display any information to you.
That would be some serious innovation. So clearly our patent system isn't the problem and everything is working as intended.