Yes, this is a serious situation because it demonstrates the following:
1. Samsung is unable to provide trustworthy updates to their products. This may not seem like a big deal to some folks, but when updates are fully able to add new features and correct bugs (and the epic has its fair share of them with its default Eclair installation, such as Bluetooth issues), being stuck in an older version because the development teams at the manufacturer are completely unable to provide workable update solutions is a big problem (look at the Windows Phone 7 fiasco as well; guess which manufacturer's phones got hosed? Samsung's) that lowers the usefulness of a device.
2. It also shows that Samsung products are actually worth less than other manufacturer's products because of this stuck without updates situation. If you buy an HTC product and it has bugs or its missing features that could be integrated via software later on, you can rest assured that they will eventually fix and/or add those. Samsung? Every time they try to do so they either just release a new product and forget the people that bought their previous products (which aren't that old really) or simply fail miserably.
3. Consider that you bought your phone on contract. If you hadn't, the price of the device is about $550.00. You can buy a laptop for less than that! How would you feel if you buy a laptop today, need to use some software on it and you're told you can't because the manufacturer hasn't issued an update needed to run the software? That's happening with Samsung smartphones, and it's simply ridiculous.
4. None of this silly issues would exist if the Touchwiz interface were to be abandoned. Unlike some folks I actually have nothing against Touchwiz (and actually prefer its app drawer over the 3D app drawer), but if the darn thing is so problematic then it's really not worth it. It's like those Intel apps they put into laptops to manage wi-fi connections. I hate them, so one of the first things I do on a Laptop with an Intel CPU / chipset combo is get rid of that software. Same deal with Touchwiz.
5. Again, remember the price of the phone. For that amount of money per purchase (and they've sold quite a few), this kind of ineptitude when it comes to ensuring their device remains relevant and useful after the sale is simply embarrassing. I work at a software development company, and I know it's difficult to test all possibilities, but we're talking about a very specific device here! Even if they have lots of Galaxy S variants, there is only one Epic 4G. How come they can't properly test and develop just for that configuration? How much trust can you place in a company like that? Maybe they should just focus on screens and sell those to other companies and get out of the business of selling the whole device.