This is only true if your _device_ does not support the latest iOS version. i.e. if I have version 1.0 that supported iOS 7, and just released version 2.0 that

This is only true if your _device_ does not support the latest iOS version. i.e. if I have version 1.0 that supported iOS 7, and just released version 2.0 that only supports iOS 8: User on an iPhone 4/iOS 7 will see 1.0 in the App Store. User on an iPhone 4S/iOS 7 will see 2.0, and "you must update to iOS 8" if they try to download it.