"choose between cutting significant features from the app or only shipping our new version to the newest Android phones (ICS and up)"
The ICS move wouldn't have been a bad option. It would've helped a lot of users convert to ICS+ devices, which Google probably would've loved.
The APIs from 4+ are much more robust than pre-ICS, and it probably would've saved more headaches while building the new version in addition to the one already described in the post.
Android 2.2 and 2.3 devices are still being released on low end phones, especially in developing countries, so the number of pre-ICS users are actually growing, not shrinking.
Bought one a year ago (2.3.3, I think). It's a Wildfire S, very small and lightweight, has a web browser. Can make calls and probably can send short messages. I was using Windows Mobile 2003 before that and thought I was finally on the "bleeding edge" of mobile technology, only to find out a month later that Android 2.3 is considered "legacy" and they are talking about not supporting it? What, are we supposed to buy new phones every five years now?
The ICS move wouldn't have been a bad option. It would've helped a lot of users convert to ICS+ devices, which Google probably would've loved.
The APIs from 4+ are much more robust than pre-ICS, and it probably would've saved more headaches while building the new version in addition to the one already described in the post.