instead they're refining their existing products until they can come up with a hit. although I'm not sure the iPhone Duo is gonna be a hit
there's simply not that much innovation going on these days, there was a lot more low-hanging fruit in the early 2000s
The N95 is a great example because the internals were superb, but the software was just so poorly conceived. S60 started in the wrong place and the more they worked on it the less it seemed like making it remotely usable was a priority.
The noise from Symbian at the time was that Nokia would get a new chip in and then come up with some lunatic scheme that involved using all the new CPU power in the stupidest way possible, causing newer versions to have even worse performance over time.
Their lunacy wasn't confined to S60 ( https://en.wikipedia.org/wiki/Nokia_3650 ), they also released madness like https://en.wikipedia.org/wiki/Nokia_7600 . It's no surprise that during this time SonyEricsson started making serious inroads on them with things like the https://en.wikipedia.org/wiki/Sony_Ericsson_K750
which makes sense because they had these half button half touchscreen hybrid phones
the internet browsing features were something akin to like paid phone numbers which you'd avoid using because it was like special stuff
it wasn't first class in any way, it was perpetually stuck in the past. and as you can see, their entire business model was based on iterating on the same thing in a million ways, so there's no way they were gonna do something from the ground up to focus on a first class experience for one form factor which could support 3rd party developers etc.
Nokia had at least three tiers of OS: Series 30, Series 40 (which had subseries) and Series 60. It was S60 which was the smartphone Symbian based one which is where they went especially nuts.
S40 was actually really good and solid, and if someone remembers the UI of a Nokia fondly it's almost certainly a S30 or S40 device. A bit basic, but for a feature phone of that era it was great. The reason SonyEricsson started gaining market share was their phones were more like improved S40 devices (like higher fidelity UIs) than Nokia's S60 lines which were . . . not.
But Nokia smartphones were essentially shut out of the US phone market by the toxic carrier-exclusives situation and their corrupt allergy to on-device Wifi (Nokia couldn't get a major carrier to take the E61 until they repackaged it as the E62 without wifi)