When you are creating a new product category, it is much easier to be integrated because you don't know how the pieces will fit together. Once boundaries are defined, it becomes better to be a modular company.

Can you motivate someone to innovate if they know they will be commoditized in 3 years?

Apple is unable to play in a modular world so they have to constantly be in the new category creation game. With shortening cycles, maybe this becomes a viable long term business model of the technology industry.