Is mobile hardware reaching its zenith?

I've heard a couple people saying around here that phone hardware is nearing its peak- that soon we won't need any higher resolution screens or faster processors. Why make a 3000x2000 display on a 5 inch phone when you could make a 1080p panel at the same size and still not be able to distinguish pixels? In a way, I think these people are right. The cycle of iteration is reaching its peak, and soon could become like desktop or laptop hardware- little changing aside from slight processor bumps (are those necessary in a phone that's already packing so much power for what it actually does?) and perhaps some different looking hardware, a bigger screen (we don't need any bigger than the Galaxy Note), or a higher resolution panel (as I said, not necessary for a phone).

So what's left to do? Innovate, of course. Someone needs to do something like Apple did when it introduced an all-touch phone. Change the way mobile technology works. Don't let it stagnate! Mobile is probably one of the fastest growing technologies available to consumers on a huge scale, and as evidenced by the fanboy wars here, has collected a huge amount of fans and people that care for it.

So I'll leave a question to discuss in the comments below- what can someone do to shake up the industry? And I mean with true innovation, not the phrase that is thrown around so casually here. What would rock our world again? Is it even possible?