I guess I'm just generally less impressed with what you see as taking risks. I see Elemental as a game using a classic model and grafting a few interesting mechanics to it, as it stands now.
You mentioned the dynamic terrain, which I suspect they planned to do much more with (spells blowing off the sides of mountains, etc). There's also unit customization, squad-type units with variable numbers of "soldiers", instead of abstracting everything out, as typical. The dynasty system where you can "farm" kids as champions and even use them as bargaining chips in diplomacy. Cities that are built up according to terrain, so players can "snake" cities around resources and block parts of the continent by expanding their cities a certain way.
Again, a lot of good elements that show up in lots of other games. If and when terrain manipulation is fully realized, I will point to that as a truly innovative approach. The rest are either things Stardock has already done, popular game have already done or are small things that while interesting, aren't especially innovative.
If you want to use the strictest sense of the word, yeah, I guess they've innovated. They've taken something that's established, and done it in a slightly different way.
Of course if you do that, you have to do that for every single game that Elemental and Stardock is supposedly outshining, by according them their just dues for the "little changes" they make.
I prefer a much higher bar before I start calling someone innovative, so it actually means something. Elemental has the potential I think to really do something that no one has seen before, or do it in a way that seems new. Elemental as it is now doesn't do that. It's doing fun, but not innovation.