I'd say innovation are still happening, but I do agree that the carPC might be outclassed by other platforms/software setups.
The way most of the frontends currently work does allow for "connected car" to a certain extend via plugins, but they hasn't followed the "multi device" trend.
With that I mean that some wants to use a smartphone to interact with their head unit while others want to use the head unit it self, and some wants to use a tablet for the kids and still have this interact/integrate with the rest of the setup. This is currently lacking in the current frontends.
This is something the automakers them self has started looking at, as more and more cars are providing a incar router to provide internet for several devices, as well as integrating it with car specific apps to allow the device to control certain aspects of the media system.
You mentioned "issues that no longer exists", could you elaborate on that? What issues do you feel no longer exists?