1. So far iPhone has 2 size, 2 resolution. iPad has 2 size, 2 resolution as well. So far lots of App support from iOS 5 to iOS 7, so supporting multiple version does not make development any difficult.
2. Yes, you had the freedom not to upgrade. Certainly users should do their homework before upgrading, but that doesn't mean user should not be given an option of not having ability to downgrade. If user chose to downgrade and bad thing happen, then user get the blame.
No. Apple is protecting its consumers from doing something that would harm their phones.
"If user chose to downgrade and bad thing happen", then the company gets the blame.
iPhones are no longer sold in 2 sizes and 2 resolutions (save the iPhone 4S, which will be phased out next year). The iPad mini and normal iPad are two different products, and have been designed in a way where apps can be scaled that require little extra development, compared to Android devices that have totally incompatible sizes and resolutions.
Again, you should have done your homework, decided if you wanted the update or not, before choosing to, with all your freedom, to update.
The choice was totally yours, you made the wrong choice for yourself, and the only person you have to be mad at, is yourself.
If you don't like the way Apple runs its business, don't be offensive and and call them unamerican. That is a very narrow minded and uneducated viewpoint, not to mention pathetic. You can go to a different company. Hell, it's the land of opportunity, start your own company and show them hows it's done right, according to your terms.