IPhone 3GS/IOS 6.1.6/Yosemite 10.10/iTunes 12.0.1.26 will not update or install apps

I have an iPhone 3GS/IOS 6.1.6/iMac Yosemite 10.10/iTunes 12.0.1.26. I have always synced it with my 27 inch iMac with no problems.
I recently attempted to install the apps "The Economist Expresso" and "Disconnect."
I do NOT have (and have never had installed) the Wall Street Journal app.
I do have a 4 digit passcode set.
I do have Apples 2-factor authentication enabled.
When downloaded by iTunes they show up in an iPhone window and are labeled "will install".
I then click sync.
The sync process begins and they "immediately" disappear from the iPhone windows and revert back to "install" in the list of apps.
They have not installed and no error or any other message of any kind has been displayed.
I suspect that this all began happening when I enabled the two factor authentication -- the iPhone is the primary location to receive the authorization code, and it has worked. It may also have begun happening when I upgraded to  Yosemite. I simply noticed that when syncing my iPhone, which I tend to do weekly by USB cable, not WiFi or iCloud; that the amount of free space simply kept growing.
Today, I finally gave in and reset the iPhone, and then restored from a backup.
Now I find that apps which I had been using daily, such as AP Mobile, were not restored, but also play this -- will install, then vanish -- game.
This is clearly something which Apple has done to attempt to force me to purchase a new iPhone 6, but until now I have had no problem with my 3GS for what I use it for. This total lack of error messages will cause me to replace my 3GS with a non-Apple product as there is clearly no reason to stick with Apple.
And yes, for me COST is a very big deal.

iOS: Device not recognized in iTunes for OS X - Apple Support

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