I agree that it seems like we haven't had any huge launches in a long while, just lots of incremental improvements.
Google has lots of people with lots of ideas, but launching anything under the Google name is treacherous. If it fails to gather adoption and it dies (like many startups do) we get blamed for killing products.
It's a problem of an internet company. If we just released software like people mostly did 20 years ago, we could just stop providing updates. But keeping an internet service up takes compute and human resources.
As for what we work on, every active product has small changes going on. In payments (my team), we continue to launch support for new forms of payment. We continue to stay up on the latest regulations around the globe. (ex: Apple stopped accepting credit cards in India for their App Store, but Google Play still supports it.)