Isn't Apple notorious for shutting down apps that usurp their markets?
That's some hilarious armchair analysis. Got any polls, statistics or.... anything... to back that up?
Or just stereotypical Apple-is-going-to-fail bs that people have parroted for the past two decades straight?
Apple has remained sexy in the face of mainstream, a feat that I'm incredibly impressed by.
Say what you will but many, many people still buy iPhones today because of the allure of it -- and if what you had said was true (that Apple was acting as as a beige undifferentiated manufacturer) than the exact opposite would be true. People wouldn't find Apple's products alluring any more.
Seems to me that the only people who don't find Apple's products alluring today are the same ones who never have -- and Apple gives as many shits about them today as they did a decade ago (none).
Elaborate?
This is intentional -- users understand that free and cheap go along with old, and users don't mistake their old/cheap device for the new hotness.
Now, with Android, the effect you're describing happens 100%: People buy brand-new Android phones that are free/cheap and get disappointed "but I thought it was an Android, I thought it was better than iPhone" or something.
I think Apple's maneuver here is deft, because you won't see a 3GS owner claiming they have the new hotness, but you will see them still coveting the new hotness (which is 100% the point).