I don't think Apple would have been much better in a similar case with a similar vintage iPhone. The iPhone 4S for example which came out the year before the Kobo Mini has been declared "obsolete" by Apple and they won't support it at all, not even offering battery replacements. And other than one software update in 2019 to keep the GPS from bricking it hasn't seen any updates since 2016.
It's hard to know from your description where the factory reset went wrong. Was it something wrong on Kobo's end? Is the SD card starting to go and caused issues doing factory reset? I can't really fault Kobo for their response for a device you bought 8 years ago that cost $80 brand new and the warranty is long gone.
Considering that Kobo keeps delivering updates to every single model they've made except the original two non-touch models and the mini some stretching back 10 years it's a bit tough to accuse them of planned obsolescence. How many tech products these days get 10 years of updates?
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