Without any software upgrades ever, the iPad will become the future IE. In fact, this is worse because of Apple's closed system they also won't allow 3rd parties to upgrade the software either.Huh? Citation needed. Apple didn't suddenly cut off App Store updates to iPad 1. Developers are free to support (or not support) iOS 5, just as they were with other iOS updates.
Furthermore, are you remotely surprised by this? iPhones prior to iPhone 3GS aren't supported by iOS 5.
Do you have the same issues with Android? There's a platform that's destined to be the "future IE". How many Android users are stuck on 2.2 or 2.3, with a horribly crippled browser?
Finally, Apple does allow other browsers, audio players and other new types of software. They don't threaten Apple's platform, the bolster it.
I'm not sure where you're digging up this FUD, but it's way off base.