You're exactly right about that.
I've never been disappointed with their hardware and how well thought out it is. Even the installation of Windows 7 on the Mac was simpler than I ever expected.
I think Apple's software (OS) is probably on par with Windows 7 - both have their advantages and disadvantages (I hate trying to view photos in Mac OS X without using iPhoto). But with the way Apple is gaining traction in the mobile market, and even in the PC market, you have to wonder if in another few years Apple will be dominating Microsoft. I think Apple is WAY ahead of the game when it comes to making devices 'cool' and touch screens easy to use. I guess the question is, will Apple still be Apple without Steve Jobs?
Steve though, may he rest in peace, he may yet have the last 'laugh' in all of this.