Is the A5 processor in the iPhone 4S pointless?
What do y'all think?
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That said, you are entirely right about the Touch being out of sync with the rest of the iOS product line. That is the problem; not the better internals in the 4S.
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Don't look too far into it.
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As for the A5, within 9 months, the iPhone 4S will likely be the majority of the iPhone market or at least a significant chunk, so the apps will start pushing the A5 more and more. On top of that, it is immediately useful now as the dual-cores can work-share all the processes than run on iOS today.
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