If the reason for not updating phones with WP8 is some type of issue regarding hardware that won't support it in some fashion, wouldn't it benefit Microsoft big time to just come out and say it? A simple explanation can go a very long ways to making people feel better about the situation.
It's rarely as simple as "the hardware won't support it". The hardware may not support it at all, the hardware may partially support it and the rest can be faked in the device drivers, or the hardware may fully support it but the manufacturers aren't interested in spending time and money to support hardware that they will never make again, to write expensive and complicated software that they can't recoup, and to risk angering customers with buggy drivers. It's almost certainly uneconomical, possibly even *really* uneconomical.
There is a cost to a p*ssed-off customer base, but that cost is not infinite, the current WP7 customer base is not large, and there is no guarantee that we would actually be happier with WP8 on these phones. The Win8/WP8 rollout is a big deal, one to which both Microsoft and the manufacturers must devote as much attention as the can possibly muster.
It's also important to remember that it's possible (even likely) that were WP8 to be made available on our handsets that we would be much more angry than we are now. Even assuming that the necessary device drivers and bootloaders could be waved into existence, there's no guarantee that they would be reliable. Device drivers are notoriously difficult to get right - "right" for a device driver means absolutely bug-free. Disappearing keyboards and dropping wifi could well be the least of our problems. If the current customers upgrade their handsets to WP8 and discover that they keep dropping wifi connections or phone conversations, or if the phone spontaneously reboots several times a day, or the batteries start catching on fire, or the battery life is measured in hours instead of days, then they will be much more unhappy than if they were simply stuck with perfectly functional albeit somewhat limited WP7.8. This would be much worse for us and for Microsoft. Worse for us because we're left with crippled phones which manufacturers are rapidly losing interest in supporting, and worse for Microsoft because the bad press hits just as WP8 and Win8 are rolling out and the ad campaigns are ramping up. Better to take the PR hit now, make sure their existing customers have the best experience they can, and focus on Win8 and WP8.
Edit: Examples of this sort of upgrade-induced bugginess are the iphone 3gs problems with the iOS 4.0 upgrade (massive performance issues rendering the phone essentially unusable until iOS 4.2), and the Nexus 1 problems with the Android 2.3 upgrade (many phones wouldn't turn the speaker on during a phone call rendering them useless as phones until 2.3.5 came out).