Exactly what innovation will be prevented? if anything, it will be better. instead of Samsung trying to make their devices look like Apple's, they will have to think a little harder to come up with something of their own. HTC, Motorola, and LG could do it, Samsung can too.
I mean future innovations. Pinch to zoom, double tap to zoom, etc, etc, weren't invented by Apple (there's documentation of it years before Apple patented it), in fact I can't think of one thing Apple invented themselves. They simply patent everything. I'm sorry, but I don't think Apple should be able to sue other companies for making their phones rectangular.
This means anything that other companies don't patent fast enough will be patented by Apple, followed by Apple suing other companies for "stealing ideas."
THAT'S how innovation will be prevented, without going into any more unnecessary detail for lack of time/necessity.
And as far as I'm concerned, the GS3 looks absolutely nothing like the iPhone and the new Touchwiz interface isn't that similar to iOS (besides square apps). Obviously Samsung is perfectly capable of making unique devices and does.
The bottom line is Apple never should have been allowed most of those patents in the first place, and this ruling sets bad precedence for future cases and granting of patents.