I think there are diminishing returns. It'd give Apple more room to breathe, to be sure, but I don't know that we'd suddenly see a quad-core A8 that eats Snapdragon 801s for breakfast. Conservatively, I suspect it could be more of a refinement that ups the clock speed and rolls in new graphics.
Also, whatever the company does, I hope it improves battery life. The iPhone 5s is fine if you don't push it hard, but there's a generation of ~5-inch phones (G2, GS5, One) that get great battery life.
+1. In 2014 I will not settle on a phone with poor battery life.
Motorola had the right idea with their MAXX phones, but Verizon exclusivity killed the chance of them getting my money
If I had a ridiculous amount of money, I think it'd be awesome to build an old click style iPod using the same form factor, but modern components. That thing would be a beast of a media device! It'd probably have enough enough battery to last for weeks.
But what would modern components in a device like that get you? (Besides battery life?). As much as I have great iPod classic memories, I don't think it would net you much.
The HDD wasn't terribly sluggish if I recall.
Lack of wifi connectivity made it a solid music player, but not too much more.
The screen resolution was fine for music, okay for photos and videos, but a better one wouldn't really benefit you
Replace the HDD with an SDD so it's more durable and rugged. I remember seeing people go running with iPod classics. I cringe for the poor HDDs insides!
New processor would potentially be more energy efficient, and be a bonus when I'm searching through
terabytes gigabytes of lossless music files -- all legally purchased, of course! ;)
Slightly higher resolution display so I can display all my beautiful cover art! I'd say touch screen, but eh! We have the click wheel. The only reason I'd like a WiFi or Bluetooth module is for automatically downloading podcasts and connecting to a remote speaker (e.g., Jambox or UE Boom).