I don't have too much of a problem with the 'Trade Dress' argument, but I do with software and gestures. Does the foregoing mean that facial recognition can be incorporated in iOS. What about NFC applications and how we interact. As has been pointed out, the loss is to innovation and advancement.
If they wish to wake the sleeping giant, so be it. But if Google put the message "Did you mean smartphone" at the top of any search results for "iphone", particularly in the coming weeks, who could blame them?
Edit: And Apple has obviously eschewed ever using widgets or live tiles?