Yes, that's a good way to put it. And a "good" competitive analysis would also analyze Apple's weaknesses, and seek to exploit them. (e.g. turn-by-turn nav, google mail integration, better multitasking, whatever)

Not if your product is lagging so clearly on ridiculously basic stuff that you get a far better ROI on just fixing the glaringly obvious deficiencies you have compared to the market leader.