Apple failed to manage expectations - rumors ran rampant about a new design, larger screen, iPhone 4S and an iPhone 5, LTE/WiMAX...
In the face of all the rumors of possible updates, an S version of what we already had is underwhelming. In the past Apple has done a great job of strategically leaking info to the press when rumors were getting out of hand (iPad 2 Retina Display is a recent example) - that did not happen this time.