Yes, I too have a Nexus 4 (bought in 2012) and it still works fine. But no more updates. I don't consider that on par with say my previous work laptop, which was also 3 years before I upgraded.
I also own a Moto E (2nd Gen, $60-ish) and bought a Moto G+ for my brother this year, but I can't count on them to receive OS updates for as long.
You could buy a new Moto G every 2 years and you would still have an up-to-date phone that is more economical than an iPhone, if OS-updates are your main worry (on average, I believe Apple supports devices up to 5 years, which objectively is a lot).
That without considering how well old phones work with newer OSs, my iPhone 4 did technically work with the last supported update, but the performance hit was so big it made it a pain to use.
So why buy the expensive Android phone when the low cost ones are really good for that price point and you can just buy another one with the money you save?
I had a Moto G for over 3 years that cost $150 in 2014 and which continued to work perfectly with zero updates (Android 4.4) during that period.
It finally died last month when I tried to recharge it on an USB cable that I wired backwards (on a motorcycle). Replaced it with a $120 Lenovo that's fantastic, does everything I could think of and more.
I think people who are ready to buy an iPhone for over $1000 would in fact pay any price; Apple should try to sell those for $2500 and see what happens.
For the rest of us, a $120 Android phone is more than enough.
Yes, maybe not updates as such but we certainly need security patches. Any network connected device does and phones are more connected than most, frequently sharing networks with strangers or friends that aren't tech savy enough to keep their environment secure..
In layman terms, security updates are seen as trojan horse for larger updates they don't want.
Windows XP still works, but that doesn't mean I would accept my computer being locked to that version of Windows.
Security updates are important, but so is the fact that you might want to run software on it that doesn't work with an older Android version.
I realize that "flashing" the ROM is not what normal user would do, but it has become very easy to do, and it does extend the (usable) life of the phone..
I have one of those and an iPhone 7.