Considering it's a device from 2010, should you really expect the damn thing to be running the latest version of the OS in 2014?
To give some scale, here's a number of devices that came out the same time as the iPhone 4 (give or take a few months):
- Samsung Galaxy S (the original that looked just like an iPhone 3GS)
- HTC Desire (the original, not the dozen follow up with extra letters added after "Desire")
- Nokia N8 (yes, that Symbian phone that was supposed to beat the iPhone)
- Motorola Droid 2 (remember those Motorola Android phones with the sliding keyboard?)
Mind you, I don't even own an iPhone, but I still understand that the OS would go nowhere if they limited themselves to what hardware from 4 years ago could comfortably run. In laptop and desktop computers it might "fly" considering how far those devices have gone, but not in mobile devices as those are developing a mile a minute.
Do you think any of those other phones I mentioned are running the latest version the the OS the manufacturer is currently shipping?