They sold off their ARM processors to Marvell. They've made various forays into wireless, though WiMAX didn't work out so well for them.
Really? About the only reason why I'm getting a new phone every so often is when the old one stops being updated. (My Nexus 4 lasted 3 years, and it would have done another year.)
Planned obsolescence, if you want.
Also, I play some games on my phone, and having better hardware helps a lot with that.
I could see how infrared sensor like in that new Caterpillar phone could come in useful especially if you are in a building trade, but fingerprint scanner?
You have to get a phone with one and use it for a week or so until its use becomes routine to really understand how big of a game changer it is. I subconsciously unlock my phone now every time I pick it up. It's amazing. Every day it saves me probably 60 seconds in total typing in stupid PINs, and those savings add up real quickly.
Incidentally I had a HTC Desire HD before and that became unusable on newer versions, as is the Nexus 7 now. These two clearly didn't have the good enough hardware specs.