Ignore the competition
What would happen if we completely, utterly, totally ignored the competition? What if we stopped thinking about competition at all? Perhaps if we devote all of our attention to users (and our own ability to innovate), we'll stop being dragged off into areas that build our feature list, but often at the expense of users. That development time might be better spent.
It's The Feature Arms Race that leads to so much sameness among products!
It's The Feature Arms Race that leads to the bloody kicking and clawing and fighting for market share. The Feature Arms Race is a form of group think, and we all know that design-by-committee does not produce art. We must wean ourselves off the obsession with the competition. If we're constantly trying to one-up them--or even just stay up with them--how does this really serve the users? How does it help the users kick ass if we're so focused making sure our feature lists kick ass? But it's hard to do.