This is a pretty poor example with the iphones, because you didn't improve Rohan. If you want to make your iphone example relevant, it would be like Apple slowing down their server to everyone with an old iphone so you have to shell out money for a new iphone just to get back to the previous service you were already used to.
Maybe if you were implementing a balance patch, adding content, raising the level cap, adding skills, etc while adding in new gear, then I'd agree with your example, but none of that happened.
Plus some of the new upgrades are just flat out worse than the previous, like swords for example. Why nerf some and expect people to pay full price for inferior gear compared to what they could have got 6 months ago.