Apple is right. What sucks is that they make you wait one whole quarter before you get the new iPhone. So you really only have it as a “new phone” for 3 quarters. A mere 9 months.
I remember similar priced smartphones, like the Nokia Communicator, be the device to have for up to 36 months. When was the last time your iPhone device lasted for 36 months? Software wise, it usually does well though (kudos Apple, you didn’t screw up like the iPad). When was the last time you used a similar priced Android phone for 36 months?