2nd gen ipod touch obsolete?

ever since earlier this year, I have been noticing that more iOS application updates are no longer being written for iOS 4. this wasn't a major concern until a week ago, when I started noticing that the number of updates that were incompatible with my 2nd gen ipod touch had gone from 4 to 13 within 8 days of each other. since there looks to be fewer and fewer apps that will run under iOS 4, I have gotten to wondering about my current iPod. A few months ago, my 2nd gen iPod Touch was diagnosed by the genius bar in SF. the employee who ran the tests told me that my iPod was having some hardware issues, and a replacement would cost me $99. I really didn't see the point in doing anything at the time, but, if I am not going to be able to use the iPod as I have been doing for the past 3.75 years, then it might be time to replace it. I know that apple will discontinue support for iOS 4 completely before too long, and I don't want to be stuck with an ancient ipod. I was stuck with an ancient ibook g4 for 7 years prior to getting my current MacBookPro. any suggestions or feedback would be greatly welcomed! thanks

"Do we simply toss them out?"
No.
"I think that this is a little ridiculous"
Since you don't just "throw them out", there is no "ridiculousness".
"I paid for a product that I can no longer use simply because it is older."
Baloney.  You can use the product, until it's no longer operational.  If it breaks, you can have it repaired outside of the warranty.

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