No. It is not fair for products to become obsolete within a year. You would not see other reputable tech companies screwing their loyal customers in this way.
I don't think you understand what the word obsolete means.
An iPad3 runs all current software, and will continue to receive OS updates and run future software for it's expected life. It is clearly not obsolete.
Your definition of obsolete seems to be "there must be nothing better". Yes, something else exists that makes you jealous or feel inferior. That doesn't make your hardware obsolete.