FWIW, DaringFireball seemed to think that the new Cortex processor would be much faster than the previous iDevices--out of proportion with mere clock rate.
This is actually really bad news for anyone with a 1st or 2nd generation iPhone. That means that developers will be pushing the limits on their apps to the point that anyone with the older phone is ****ed, unless they want to pay AT&T $250 to break their contract.
For this, I am not looking forward to how many applications I won't be able to run with 3.0.
Technology marches on. Things improve. But I disagree with your dire conclusion--I think things will be just fine for a long time for the 40 million users of "older" iPhones/iPod Touches.
Looking at non-games:
* New, demanding apps won't flood out THAT quickly. Your contract may be long over before you notice any widespread issue, if ever.
* If an app NEEDS extra speed then it could never have been done on our older devices anyway.
* If it merely benefits from speed, then that's great--it will still run our old devices, just slower, naturally.
* How many mobile apps are that speed dependent anyway? Most are not doing massive calculating, or are offloading the heavy math to a server (like Shazam). The speed makes everything snappier, but it seldom makes something possible vs. impossible.
* 40 million users is not a market to turn your back on. And the 3G is still going to be selling in mass numbers at $99, so the 40 million will keep growing. How long before the number of 3GS's is higher than the number of everyone else? A long time. But even a 40+ million user "minority" will still be worth selling apps to for a long time after that.
And looking at games, which push a computer's power to the limit:
* Desktop games have long offered different detail/quality levels to run well on different speeds of hardware. iPhone games can do the same, or turn their back on 40+ million customers. (Or, more likely, developers will target ONLY the older devices.)
* Eventually, certain games will push the limit in fundamental ways that could never have been done on our older devices. The existence of the 3GS is not the problem--our devices were NEVER going to play those particular kinds games (which will be the minority anyway) so we haven't lost anything.
I really don't agree that "anyone with the older phone is ****ed," and I'm very glad to see the platform moving forward.