Yes. But, will you like it? Maybe not.
With the first gen. iPod I quickly fell behind the pack, and there were simple things like pairing it with a bluetooth keyboard that I could not do. It eventually became useless (for me) beyond listening to music. I sold it and got a decent price for it. An upgrade to an iPod 4 was "resolutionary," and such a better experience overall. I have long since sold it, but I remember well what a shock it was to upgrade. I figure in 4 years my iPad 3 will be a dinosaur. I love it now, and I am sure I "could" use it in 4 years, but I am not betting that I will.
Think about it: your friend sitting next to you using the paper-thin iPad 8 with the 450 ppi cornea display, two apps open on the screen at once, and a 20-hour battery. Yeah. Your iPad 3 will not be looking so nice then. Better to sell it every year (if you can manage to guesstimate the new product announcements ahead of time) and upgrade. Think of it as spending about $10-15 of "rent" for the latest and greatest.
[EDIT:] The October iPad 4 announcement caught me off guard and easily knocked an extra $100 off the resale value of my iPad 3, so I was quite sad to have missed my chance. I was not really interested in upgrading, but I could have at least saved myself some money by doing it.