Apologies for this much delayed addition to this discussion, but if there's any hope that apple actually do read their own discussion forums, I would like to add that that this is totally unacceptable. I can bet my bottom dollar that this would not have been this way if Steve Jobs was still around. I realize that app developers also have a responsibility to keep their users happy and able to use their apps (in which ever form or "version" they might need them, for which ever device) and especially since they paid for them, but at what point will apple actually step in and sort this out?
I have a perfectly functional I-phone 3G, on iOS version 4.2.1. I have tried everything from jail breaking it, restoring it, and attempting to hunt down the older versions of my chosen apps in order to use this great device to it's fullest potential. Currently, it's lying in my top drawer of my desk, and it's most valuable use to me now is as a defense mechanism should I ever find the need for it. It's sad that Steve Job's vision for Apple has come to that. Even if it's just a silly little phone. It's still a GREAT phone, but of absolutely no use to me.
What a waste.
Sort this out Apple!