All of your realizations are painfully true. Here is the gimmick which most tech sites and apple afficionados refuse to realize or publicize or even admit: apple products are underpowered. They do a great job in the presentation, the design, and in the software realm. IOS is secure, fast, simple, elegant, but IOS runs on underpowered devices which last a year - maybe two.
Apple's hardware choices are made with profit maximization in mind. There is a reason why the ipad 2, iphone 4, and now the latest iphone 4S only come with 512mb of ram - to force users to upgrade. They're not only going to deny previous buyers improvements - siri, airplay, video recording, etc - but they're also going to slow the performance of previous instalments. This is purposeful in the sense of pre-planned hardware limitations. In our case, the ipad 1 came out with 256 mb of ram which in any tech junkie will tell you is unacceptable for a $499, $599, $699 device. But for grandma, what difference does it make?
I couldn't get my ipad to perform - music app crashed every other track, safari wouldn't open more than three tabs or stay open for more than 10 minutes, and the system was simply so laggy, I couldn't stand appreciating the $650+ wasted on a metal brick. So after much restoring, and being unable to revert to a workable 4.0.X firmware, I sold the ipad 32GB for a mere $300.
I regret the decision now since the latest jailbreaking tool is out, and they're probably going to find a way to turn off all the features in IOS 5 which are slowing it down on the original ipad, but since this is the last year of support updates for the ipad 1, I don't regret it that much - Not as much as spending the money in the first place.
I've become repulsed with the business practices at play here. And here I am complaining about it at an apple forum - so I'm hoping they'll read it. I'm done buying IOS devices for the foreseable future. I'm done with the "non-expandable," no memory-card slot to increase storage. I'm done with paying $200 more just to get from 16GB to 64GB when we all know a microSD card for 32Gb costs simply $30. I'm done with the lack of choice and customization, I'm done with owning devices which I do not actually own since I can't add any software which is not "approved" by apple, and I'm done with lack of support - and that's somehting I never thought I'd say about apple.
Sure, I walked into an apple store with my ipad, and they restored it for me, and handed it back to me clean and "light," only for safari to crash in front of an apple employee - his response? "I'm sorry, they're fixing all the bugs." Meanwhile I'm 5 months in without being able to use the device, and without being able to revert to the previous firmware.
Thank you, apple.
I'm done.