Have you installed IphoneOS4 on your 1G Iphone?
"Capable" is a subjective term. You can install IhoneOS4 on the 2G Iphone, but there are many complaints that it is very slow. Only the 3G and 4G Iphones run well with IphoneOS4.
Phones are not PCs running shrink-wrap OS releases - industry-wide it is unusual for any smartphone to support upgrades to full new releases of the OS. Unlike a PC, phones have a limited lifetime (note that 20 month free upgrade window). It doesn't make much sense to try to upgrade old legacy phones. Apple's caught on to that with IphoneOS4.
No, I haven't installed OS 4 on my 1G. If you had read my post you'd realize that I don't have an iPhone. What I do have, though, is an HTC Hero that was released in 2009 and is STILL running a 1.x software. The problem here is that Android is on SO many platforms with SO many carriers that each carrier is responsible for getting the OS up to running with their system.
2.x apps are out on the Market (1Password, for ex) that would be GREAT to have, but I can't run it b/c Cellular South and HTC can't get their act together to get a working version for the latest Android OS running on a phone that's less than one year old.
I don't think any G1 owners expect to run 2.1, but there are modded ROMs out there that are running on G1s. Anyone who has an Android phone purchased in the last year has every reason to expect to be running an OS that came out w/in 6 mos of the original release.
I don't expect my phone to last for more than two years. In the age of the smartphone, though, I expect to have a phone that can run at least one OS up from what it was released with. Currently, I have such a phone. What's not happening, though, is that carriers are not trickling down the OS to phones that can run it.
Ultimately, who does the fault lie with? Google, the carrier, the manufacturer or the consumer? I don't know, but Apple's not having this problem with ATT. Phones that can run the OS are running. Phones that can't are not. I don't think folks w/ three yr old iPhones have reason to complain about not running iOS 4.