No, the original iPhone & 3G don't support iOS 5. But they did support the current version of iOS for 3 years after they were released - far more than any Android phones of the period.
(And, no, they don't charge for iPod Touch updates any more - that was technically an accounting regulation issue that the government changed.)
(And, no, they don't charge for iPod Touch updates any more - that was technically an accounting regulation issue that the government changed.)