I really think there has been some great progress on the hardware side.
Well... as a professional in computer hardware development I really can't have another opinion anyway...
but on the other side comparing using my computers from ten years ago (not talking about twenty year old word processors or the home computers with a tape) with the recent ones is not such a big difference.
There has once been a time where I knew *why* to spend more money for a bigger computer, because you really could do something with it that the smaller/cheaper one could not deliver. I spent lots of money for special hardware (high end graphics cards, video digitizer cards, the very early computers even needed additional hardware to connect to a network or even a printer).
Today the situation changed - don't really know what the "standard" computer from the discounter can't do. And even why to buy a new one at all.
High end moderm games are almost the only answer to that. But in the end they are not 10 times more fun than the old ones just because they need 100 times more powerfull hardware.
After all I think the computer industry is usually no longer a really innovative one in the end. PCs are only "bulk material" today. With two exceptions (for private customers):
The first one to sell it over design and image. That is probably the reason for Apples success. They sell exactly the same stuff, but at least packaged nicer ant that allows them to make some people think its different and pay loads of money for it.
The second one is the gamers. Almost the only way to need a new fast computer or graphics card twice a year.
Don't tell me wrong... I really think there was good progress (USB mentioned was one even if it took years for the software to really support it), but for that long time, it is still disappointing for me.