It was the first phone browser done right, and is still arguably the best. Outside of the phone operations, I would trade away every possible feature of iOS for Safari.
Notifications is an annoying piece of crap for a lot of people including me. That isn't to say the previous generation of alerts were not worse, they were.
But I highly doubt that many people think it is THE cornerstone feature. For some, like me, it's Safari. For others, it's FaceTime, others the camera, etc.
I think Safari still doesn't auto-highlight the text in the search box (my most used browser function besides actually scrolling a page), so annoying to start typing a new search time and realize it's just adding on to the last search time until I hit the x. I guess Safari now at least syncs tabs and bookmarks with the desktop version, but still it's a stretch to say it even competes as a top mobile browser IMO.
I think notifications are only annoying on older iOS versions. In Android they've always been unobtrusive, and with Android 3.0+ (and especially in 4.1) they've got a lot of added useful functionality.
But to get back to the point I would say the defining feature on iOS is proper group texting. So, yeah, that's a lot of quibbling words to basically agree with your point.