Apple Updates costing me money with iOS7 and iPhone 4

I have an iPhone 4, great working, cosmetically perfect phone. I update it to the iOS7 and have nothing but problems. So, as of yesterday my phone is lagging so badly it is unusable. I make an appointment at the genius bar and go in. They test and reset as new iPhone only to tell me that I am out of luck, that the phone can not handle the iOS7 update. I am 2 months out of my warranty so will have to spend nearly 600.00 if I want a working phone. I am completely disgusted by this. Apple is supposed to stand behind their product, thats why I chose them. Now I have to buy a new phone because of the this update? I want to contact someone at Apple but get the run around. This is not right. Why are they making updates that are not compatible with their own product? Who wants to spend 600.00 on a phone every year.

i have also turned off background app refresh in settings.

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