..and you obviously have an income in which throwing $500-$900 is no problem for you. Great. That is not the case for all of us.
BTW, the iPad 1 hasn't even been out for 3 years.
I understand that Apple pretty much needed to do this but I think it would be pretty understandable that people would be upset about such a quick update, especially the processor that is 3x faster if not more.
Disposable income? No. But it's a business expense that's needed to be a legitimate developer to give users of my apps a proper experience. By putting that kind of care into the apps I develop, I ensure that my apps are worth buying, which makes it possible to keep up with new products. That, in turn, makes it possible to keep making great apps for ALL users. Not just the users of the latest devices.
And again, you're acting as if the iPad 3 is just suddenly useless. It's not, and you're behaving like a child if you want to pretend it is. I know I'm not the only developer that will continue to support all the way back to the iPad 1 with future apps. Hell, I still support the 1G iPhone and 1G iPod Touch when I can.
As for the iPad 1, I do seem to have my dates off by a few months. I got a year and a half out of it, then my mom got a further year out of it. She gave it to a friend, who's still using it. Either way, you have no argument against that. It's years old, is now three models behind, and *gasp*, it still functions!