But the prices have gone down so much that you can get a low-cost smartphone with Kit Kat. The Moto E is $129, has decent specs (even Gorilla Glass) and runs Kit Kat. It's only a matter of time before such phones dive below $99.
While you won't see many new 256 or even 128mb systems out there anymore, 2.3 provides more usable memory to applications on an (otherwise) identical configuration.
It gets a little bit faster with every new version of Android that comes out, and with ART enabled it is noticeably faster in some apps. 128 and 256mb devices should just be scrapped, there is simply no reason to keep them around anymore.
So, I stand by what I say, even with low memory mode needing 512mb, it is far better than being stuck with Android 2.3.
http://www.carphonewarehouse.com/phone/samsung/samsung-galax...
http://www.carphonewarehouse.com/phone/samsung/samsung-galax...
http://www.carphonewarehouse.com/phone/samsung/samsung-galax...
http://www.tesco.com/direct/virgin-media-alcatel-one-touch-t...
http://www.tesco.com/direct/t-mobile-samsung-galaxy-pocket-n...
The Galaxy Ace range is pretty popular here, too.
There are also a slew of super-cheap chinese phones which come with 2.3 -- check out aliexpress.
They're not new models being release with the old OS.
Android 4.4 is a boon to cheap phone manufacturers because of low memory mode while retaining all the modern features. A $99 phone that isn't shit that runs Android 4.4 and has BLE would enable so much stuff that the rest of us take for granted.