3.1.3 is the last 3.x supported version and no new updates will come out unless a major security bug is found. You only see the apps that support 3.1.3 on your store, that's why you think all apps support it. Because it's true, the ones you see, support it
It takes developers lot of time and effort to make sure that they run on a 3.1.3 device. From the dev community most people I see making games are just moving away from developing for it.
I'm talking games of course, since they are very hardware demanding. If you use facebook, email, twitter, calculators, apps... well, those don't need the full power of the device so they will just work fine even on an iphone 2g. It also depends on the type of games, 3d games requires much more power than 2d. Angrybirds can run even on a 5 years old nokia