As bad as this is that it costs to get these new apps, you have to remember Apple was never going to release them for free in the first place. They're only adding it as an option now because so many people are having to resort to jailbreaking just because those apps are useful.
If they'd originally released the iPod touch with these apps the fear was it would eat away at iPhone sales, and even though Steve said there were 4 million iPhone sales, he didn't say how many iPod touch sales there were.
I'm actually pleased that this update isn't going to cost me much, and for what, a bit of good karma because I'm not stealing, OK, fine by me. For others it wont be enough.
Will there be two firmware versions from here on out for those who don't pony up the $20?
I'm thinking iTunes will have an applications folder. They'll be stored in there, you'll still download iPod touch-specific updates but you'll be able to add your applications again afterwards if they're removed or what not.