It'll probably get updates for a few years.
I wouldn't count on that.
Sure the GPU performance of the iPad Mini and iPad 2 is completely adequate for the resolution. That is why both devices perform much better with iOS7 than say a iPad 3 or iPhone 4.
The issue is that the CPU in those devices is MUCH MUCH slower than the 5C or even a freaking Moto G. Eventually the GPU can't do everything, especially if you are wanting an iPad as a web surfing device.
The 3GS got cutoff from updates before the iPhone 4, even though per pixel the 3GS has more GPU power. And they were willing to cut off the 3GS not long after they stopped selling them.
Eventually Apple is going to want to leave those 2011 CPUs behind, which is why they are backing away from both the iPad 2 and non-retina iPad Mini.
I still think it is a good device and a good value, for a certain segment.
This would be a perfect device for mom, who isn't demanding on her devices and probably doesn't care about updates anyway. She will be super happy you bought her an "iPad" and not care about not having access to new apps. I would also get one for my kids, with the assumption that they will break it in a year but I won't care as much as if it was a new model iPad.
I would NOT buy this device for myself or for anyone who follows technology and will want new updates and apps. This thing is at the end of the line, like buying a Core 2 Duo Macbook Pro today.
If I was buying for myself I would get a cheap iPad 4 (by far the best iPad value right now) or save my money until Apple stops being cheap and puts 2GB of ram in their top models.
Personally, I'm looking for a used iPad 3 for around the same price.
Offtopic, but I wouldn't do that. The iPad 3 is the worst iOS device all time. It runs iOS7 MUCH MUCH less smoothly than the iPad 2 because that GPU per pixel is HALF as powerful as the iPad 2.
There is a reason they ditched the iPad 3 in less than a year. It was a stopgap bandaid, just like all those early retina Macbooks that can't even run freaking OSX's GUI at 60fps.