One of the most attractive aspects of his thinking is that it's more than just observations and insights about being a company that innovates: there's a process that he comes up with as well. There seems to be a trend along the lines that innovation isn't random "brain-storming," but is instead a deliberate set of steps you take.
In Free Prize Inside, this process is called "edge thinking" (if I remember correctly): you take a normal idea/thing, and push it to, even beyond, the edge of what seems normal and acceptable. Perhaps an example is whacky USB drive/camera I linked to earlier today. It takes a normal USB drive, and not only layers on a camera and other devices, but adds the free prize of being a fashion accessory. Imagine that: computers as a fashion accessory.
Sure, it's not the best example in the world (esp. for this audience ;>), but it's sure something more than a cheap-o looking USB drive. (Granted, when those first came out, I just about crapped my pants at how awesome they were: I went out to Fry's the next day and bought one...I never really use it for anything, but it was so frickin' cool!)