Using your auto industry example, there are advances, but consumers still want powerful cars with decent fuel mileage and high safety. Alt fuel cars haven't yet been able to match the power equation in a production-friendly way. Automakers have been working on it for decades. The two common solutions (reducing cylinder use when not accelerating and using electic cells exclusively or in hybrid combinations), are what the industry is likely going to settle on. The true advance would be harnessing hydrogen and solar power sources, but that's not going to happen as long as consumers continue to demand what they're used to now.
Here's what I think is the future of smartphones: 1) True hands-free operation so that calls, searches, directions, voicemails, texts, and phone operation can be done by voice command only. 2) Use as an information access device - I think phones will be used to remotely access rather than replace desktops and laptops. And 3) Multimedia sources and remote access devices - same as now except I don't think there will be much of a market for freestanding car GPS, non-professional P&S cameras and video recorders, and media play via onboard microSD storage or remote-access to other media sources (similar to mobile Slingbox).