Now that iOS 5 is out and compatible with iPhone 3GS & up, should we still support iOS 4?
Should we still support iOS 4?
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If iOS 5 specific features aren't needed, then YES. People with iPhone 3G's and older iPod Touches won't be able to upgrade to iOS5. Also, there is a lag in how long it takes for the entire population of app users to migrate to iOS5.
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Yes, according to Read Write Web, 25 million people have updated to iOS5, which is only about 25% according to an article from March 2011.
The general rule of thumb is if you want to live as close to the edge with Apple that you support the current and previous releases. That means with iOS 5 in the wild that you continue to support iOS 4 until iOS 6 is released.