Ask HN: One solution to the iPhone app pricing problem

I started writing this as a response to http://www.streamingcolour.com/blog/2009/07/13/my-iphones-not-cheap-but-my-apps-are/ , but most other comments seemed to talk about the lack of marketing for that app. So I thought that this topic may merit a seperate discussion. I'm curious to know what other people think about in-app purchases and using that as a solution for the pricing problem that plague most iPhone apps. -- My recommendation/solution for the problem: Release a low-priced app with a lot of value Then provide additional features at a fair price through in-app purchases. The base app should be cheap (and packed with value). The cheap price should be able to address the entry barrier for customers and the app should convince users of the value of the app. Customers who've tried out the base version of the high-value app will then be more inclined to a pay a "fair" price (as opposed to a super-cheap price) for incremental features. -- One risk with this approach is that some users who've purchased an app may be annoyed to find that some new features (in updates) aren't free.