If you, someone experienced with "real" camera gear, were "astonished" by the iphone 7+ pictures and thought they were taken by "five grand worth of gear", then for the average person further gains are going to be unremarkable.
Yes, I understand that a camera gearhead finds everything new and each small improvement incredibly exciting. But for the average picture taker none of it is a big deal; what they have is already quite good, certainly good enough. Of course, it won't be hard for marketing to convince people that they should go out and once again fork over more of their hard earned money for "the best", even if it's in reality a minor improvement.
Also, for the real photographers the equipment is secondary. Better gear helps very little with creating better pictures. I assure you, people were making awesome pictures with digital cameras ten and twenty years ago, with specs that anybody would laugh at now. Good photographers can produce good pictures no matter what camera they take them with. (And, conversely, bad photographers produce crap no matter how good their cameras.)