When updates are free, what are the realistic alternatives? Android devices, for example, just reach end of life much more quickly. Given the option to update at the expense of performance or no option at all, it at least seems the better of the two choices.
Maybe we need to start being more realistic about what things "cost" in performance and start evaluating the cost/benefit ratio. It's OK to say no to a feature if it is going to degrade the user experience. Just because we have a phone with a quad core 2 Ghz processor does not mean we need to design the OS to require it.
I didn't say the Android situation was good, although with CM I am generally able to squeeze a few months to years of additional life out of an Android device.