The iPhone 4S isn't outdated. I think It'll be fine software wise (As someone else said) un till iOS8. Parts wise, It's still fantastic and will be for another 2 years IMO, there isn't a great amount of difference between the products. iPhone 5 is a massive disappointing for me. I was expecting something Next-Gen, the difference is not enough to match the price difference atall. iPhone 4S is still outselling iPhone 5 because of this reason.

Im in the UK, so it may be a little different depending where you live.
I brought the iPhone 4 like 2 months ago because it was 320, which was 150 cheaper than the 4S and 210 cheaper than the 5. I didnt see the point in spending the extra amount, as the differences aren't justifed in my opinion.

I would get the 5 though, depends on price though

I have the iPhone 5 and regret getting it. Don't get me wrong, the iPhone is a good phone but there all the same software wise and you can't really personalise it to your liking unless you jailbreak it which is not yet out for newer iPhone models.

Go for something like the galaxy s3 or galaxy note 2. Most of the apps that you have to pay for on ios are free on android and it can be personalised to your liking

iPhone's are still good though