Is Apple at a critical point where iOS 6 and iPhone 5 will determine their future

I know that Apple is huge but lately I discovered that all my friends are talking about iOS being too simple. The sole reason as to why people still love ipad, iphone etc is because of their high quality Apple Store. Android gives us more customization options.

Do you think that Apple needs to change their whole layout and bring more customization features to the end user. I also want to know the future of iPhone cause 3.7 Inch is just not Google Enough these days. I mean we have HTC One x and SGS2 where users love their display. What do you think of iphone's fate.

As an Apple lover I think that this is the most crucial year when the competition is at its peak point. If android cannot overcome Apple's domination in the next 12 months then Game Over.

These are my thoughts and I would love to know yours