Sigh... I guess this was pretty much inevitable. It wouldn't bother me if they made apps backwards compatible, but they obviously haven't changed the kernel over. Basically my Titan, which I didn't purchase on a contract, so upgrades are out of the question, is now redundant. No more apps, and an update which brings very little to the device. I don't see why they couldn't just give us the option of wiping the device and putting the full WP8 on it, if an upgrade from WP7 isn't possible.
I think I will see what the next iPhone brings, and then decide whether I want to go back to Apple.
This doesn't make me angry, it just disappoints me that MS have decided to do this to phones which are less than a year old. Even Apple wait a few years before killing software updates. I know this was a full kernel change and that probably made things more difficult, but I think they should have tried harder to get the full OS on at least the 2nd gen devices.