I don't know that acquisitions are a sign of bad things to come. I mean Apple has purchased many companies over the years.
This whole "no longer innovating" thing is cracking me up, btw. Apple really only released 3 products over the period of 10 years that are considered their innovations (iPod, iPhone, iPad). There was a 4 year span between the iPod and the iPhone. Another 3 or 4 years between the iPhone and iPad. Given that time table, what makes people think they've stopped innovating? They've only now hit the 3 year mark since the introduction of the first iPad. How quickly do people imagine they've come out with new, groundbreaking technology/markets?? Why do people ignore the microevolutionary changes they've brought about in each of those categories? Why do people ignore that competitors have only recently caught up with Apple in each of those categories (and that is really a subjective observation - it's arguable that their competitors have really matched Apple's contributions in those markets)?