You can see some of the work going on in the widget/decorator theme in some blog posts of the VDT: http://wheeldesign.blogspot.se/2014/05/monday-report-14-lazy... http://wheeldesign.blogspot.se/2014/04/monday-report-12-amaz... http://wheeldesign.blogspot.se/2014/04/monday-report-11-go-t...
I don't really care if it's ugly in default. I'll add an icon pack and a theme a few seconds after a new install anyway. It's not like a console is exactly beautiful - except in a minimalist tech aesthetic sort of way - but I still use it and it does the necessary.
This is one of the great things about open source, the choice. If you want fancy-schmanzy UX innovation go with Ubu' default mainstream offering.
That said KDE is innovating - eg with Activities, and with PIM integration - but in ways I can thankfully ignore.
That may well be a Good Thing. Not all "innovations" are useful or desirable. Sometimes something that "just works" is all that's needed.
Me, I like KDE just fine the way it is. shrug
Window 8 was clearly a mess but at least Microsoft is trying something.