Innovation for what i saw from..FSII to now, for most parts come from 3rd party dev, rarely from the plateform itself (i speak for MS franchise, on XP, guys are really try to innovate). From a simulation point of view and not from a eye candy point a view, i don't see lot of innovation making simulation experience enhanced, If we remove bing image and we compare P3D and MSFS during a "serious" flight, i'm not shure there will be more innovation than regression (yes, VR is an innovation ,only for FS franchise, the new flight model...it could give very good things in the future, i'm confident about it needs some works and dev need time to learn to use it). all the JS stuff are a progress compare to old xml way, i am more reserved about wasm (is it planned from the beginning or added after ? that looks like a wood leg added to fill a lack) and sandbox story.
(edit : i really love the weather engine, that's the innovation of this version !)
But i admit the product is young and we have to wait a little. i'm just a little bit disappointed for some points not really evolved and in the same time, we see new content. it is cool but why adding content on a plateform not totally stable (and doing so, adding some instability) ?. I have fun to use MSFS, really great fun, and just a few things could make it above all in quality, but i don't see these things coming, nor any will to do them, perhaps i have this feeling because all efforts are focused on the market, xbox and a very locked (to not say opaque) and controlled communication.
And last, from a user point of view, the dev part seems to be going all over the place without a real project management strategy and with faulty quality control (even if it is getting better last months). Maybe because people in charge did not have, younger, the dream of aviation nor the skills in this very particular area (while their skills in video games are not to be called into question, on the contrary).