I have an application that I would ideally like to run on all iOS versions, however I think Apple accepts apps only from a version and above (3.0 I think, but not sure). So
To back up what hotpaw2 indicated, this is from the News and Announcements for iOS Developers on June 29, 2010:
Make sure that your applications are compatible with iOS 4. All new applications and updates to existing applications must be built with iPhone SDK 4. In addition, the App Store will no longer support applications that target iOS 2.x.