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iOS 5 completely crippled its performance. I held onto mine until the iPad Air came out and then I upgraded. Things got so bad that several stock apps kept crashing. It was definitely underpowered. Though it debuted with iOS 3.2, so there you go, I guess.
 
I am still using mine too. A 64GB 3g bought on launch day (a little later here in Japan due to the earthquake.)

Like most, iOS5 wasn't a good idea, it reduced it to a buggy crashy mess.
It was almost unusable so I updated to a mini v1.

I then reinstalled the os and turned off all the bells and whistles and it is usable for most things. Web browsing (I have Java script turned off) and air video are the main uses. The bigger screen is a nice thing to have.
Some less demanding games run pretty well.

Actually since installing iOS8 on my mini they seem to run about the same speed! If I was a paranoid man, I may suggest there was a plan behind all this..

If you turn off notifications, iCloud, java script it doesn't run 'that' badly..although it does limit its use somewhat.

I still get about 8-10 hours out of the battery, and will probably continue to use it until it dies, I feel I got my moneys worth anyway.
 
Still have my iPad 1. Flawless!

I upgraded to an iPad 3, and I use my iPad 1 in an iCade arcade cabinet.


I love this! I put iMame in it and now I have a mini arcade cabinet running actual arcade goodness!!

I wish I could go back in time and give this to myself in 1983! ...With Dragon's Lair too!!!!! :D
That is my plan for my iPad 2 when it comes time to retire it. My iPad 1 is still cranking away in my vintage TV, but I have a iCade cabinet (blue with the rainbow sides) that is now lonely.
 
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