It sounds to me like Apple is trying to play catch up with Android. The only things I honestly would like on the Eris that is on the new iPhone is the LED flash, the front facing camera, and the nice new retina screen. This is because Android already has multi-tasking, Android has widgets (which the iPhone STILL doesn't have), and Android is way more customizable.
I really don't think that Apple thinks this way at all. Apple has said, time and again, that they care less about market share than they do about making great products that sell at a profit. They will definitely not get into a price war with Android sets, nor will they worry all that much about things like widgets (as I am sure that they are viewed in Cupertino as battery drainers more than anything, and icons can be badged with unread counts, etc.)
Apple seems committed to an update every year, on a definitive schedule, so they are going to get the best hardware that they can get at a reasonable cost that will get them through the year - they will not cheap out on one hardware component, but won't add something like this year's display before it is a reasonable cost to them.
Because Android is selling multiple handsets from multiple vendors all through the year, there will naturally be some leapfrogging. I don't think that Apple is all that worried about it.
I heard an interview with the CEO of HTC who, when asked about adding hardware to react to competitor's products, said that it really doesn't work that way. It takes them about a year to get a handset from design to sale, and they cannot just make a change at the last minute to try to match a competitor's feature without affecting the ship date by weeks or months. As evidenced by the Gizmodo phone, Apple was testing this handset's hardware months ago, and I am sure that as Steve Jobs and Phil Schiller were announcing the 3Gs last year, Jonny Ive and his team were well at work on the iPhone 4. So there is no way that Apple was playing catch-up with Android - Android 12 months ago was nowhere near what it is today.
To be honest, I sort of admire the limited multi-tasking of iOS 4 - multitasking limited to a specific set of APIs. II seriously do not need many other apps sitting in the background unless I want them to be listening for notifications. I think that Apple made a pretty reasonable design for multitasking. And after my phone went through the battery in a half day about 10 days ago in an endless loop of trying to sync calendars, getting an error, and restarting the sync again, I'd love a bit more sophistication in some of Android's code (well, this was Google Calendar sync, so we'll blame Google).
I'll agree that iOS's notification scheme is garbage, though. That would drive me bats.
As for the iPhone 4 vs. the Eris, of course the iPhone is ten times better as a handset, but it's also using state of the art hardware, and built to have a ton of battery life - which I think is the Eris's major shortcoming. I knew when I bought the Eris that it wasn't the best Android handset out there (though I really had no idea that phones like the Nexus One, Incredible and Evo were coming so fast), but it was good enough for what I needed, and I remain happy with it. It's no iPhone 4, though.