Would never work in reality, you can't optimize algorithms beyond their computation complexity limits.
You can't multiply matrix x matrix (or vector x matrix) faster than O(N^2).
You can't iterate through array faster than O(N).
Search & sort are sub- or near-linear, yes - but any realistic numerical simulations are O(N^3) or worse. Computational chemistry algorithms can be as hard as O(N^7).
And that's all in P class, not even NP.
You're measuring speed not intelligence. It's a different metric.
You're right on the liability front - Apple still won because everyone bought their hardware and their margins are insanely good. It's not that they're sitting by waiting to become irrelevant, they're playing the long game as they always do.