I wish other developers would adopt such a considerate attitude. Alas, my personal experience is that many simply abandon users who dare to have a device more than a couple of years old. My worst personal experience being an app that became obsolete, only to be replaced by an app that doesn't support my version of iOS.
Obsoleting an app is a problem, but -- at least in the PC space -- people who do not upgrade from e.g. XP to Win7 are unlikely to pay for new apps - so, if you care about getting paid, there's no point in supporting XP home users (enterprise is different, and I do not wish to go into that).
Does anyone here know if that's also true for iOS devices? I'm quite sure that the big app spenders would be the people who continuously upgrade. There might still be a significant population who does not upgrade to make financial sense for still targeting 5.1 with new apps. I don't know, but my guess would be "not so much".
Well, I can only speak for myself, but I definitely would keep buying apps if given the opportunity. There are plenty of apps I've wanted to purchase, but haven't been able to - whether there are enough like me that would make the extra market lucrative enough is another matter.