"Stop supporting" really doesn't mean much, I use my 1st gen ipad all the time, it's not an issue at all. I guess there will be new apps I won't be able to use, but, I haven't run into that yet.
Apps don't take up much memory at all, just the content of itunes (songs, movies). On big trips when I really want to use all 16gb, I just don't sync every song I own. It still holds a couple movies and 8+ hours of music. So long as you have a bigger drive you connect to, I don't see think lack of lots of memory is a big deal. I certainly wouldn't pay $180 more for it.