Software wise it needs an update too. It's much easier to take an "OK" picture on an iPhone than on a 1020, but if you calibrate the shot with all the settings, not much can beat the 1020.
And most people just want to point and shoot, and the 1020 lacks in that department.
Yeah point and shoot isn't great. Luckily it is improving in newer phones, look at the 830 vs the 1020 http://www.anandtech.com/show/8726/nokia-lumia-830-review/5