Uh, that's just wrong. If you don't upgrade your software your money is not gone.
So no, your funds are definitely not lost. You might be the only one connected to the "network" but wasn't this the promise of cryptocurrency decentralization?
Same thing has happened to Bitcoin multiple times. BCH, BTG, etc.
It is the re-centralization of Ethereum and will be made worse with Proof-of-Stake.
There's nothing stopping you from selling your ether to someone who wants it and deploying that capital on something else. Or ignoring it and forking the chain and keeping your fork ether. "But it's valueless" I hear you say, see my above paragraph for the answer to that one.