Not really. More refined maybe: particularly on the screen (which is gorgeous and it's main appeal) and camera. You're right that iPhone's screen is a tiny bit bigger, but that's more to Nokia's desire for 16:9 (I do think 16:10 would have been a better target, but that's neither here nor there). Nothing else was really at all comparable before. X1 has great resolution but is quite obviously tiny for example. N97 is much superior in resolution to iPhone, though.
It's lacking on others, most notably the AT&T3G and QWERTY and more than a few GB of storage. As you noted, if you're in a 1900 area, you can mitigate the former, but not the latter. Looks like a great phone, though with a bit more of a price premium. It points out the main weakness for me on N97: not enough N82 DNA and none of the advancement I would have hoped for in the camera (8mp, face/smile detection).
My ultimate phone would have both LED (for video) and Xenon for stills, though, to truly replace a point and shoot. Maybe the ******* hybrid child of Idou, OmniaHD, and N97.

Hopefully SE can pull their head out and hit a home run with Idou in that regard... but still looks like they're going to pass on the QWERTY.
But actual innovation in OmniaHD? Not really much new in there. C905 already did the camera improvements...
Widgets are innovation, as is the concept of full integration of the Internet and social networks. iPhone didn't even innovate much as numerous smartphones already did the Internet and email thing. But Apple's genius has never really been about innovation, but refinement and polish making a UI that doesn't suck, as Steve would put it.