Developers ought to be free to choose how to make money, whether it's ads, freemium or paid, and I support their right. I'm an adult who can decide whether or not it's worth my time/ money.
For instance, in playing Jetpack Joyride, I paid the $1.99 to the developer to collect double coins because my son and I were going through and unlocking everything in the game. It was a little frustrating watching him have to save up all of those coins. But for Tiny Tower, it was so casual that I didn't spend any money on Tower Bucks.
It's still a balancing act for developers. I support any developer who asks their consumers to exchange a small amount of money for time. Most adults can put some sort of monetary value on time and/or entertainment. What I can't support, however, is a developer shipping an incomplete game that can be completed by in-app purchases (or a game with a steep difficulty curve and charging for weapons/ armor/ etc that can't be gained through normal gameplay).
However, the biggest thing that bothers me about "freemium" games is when they deliberately target children who don't understand the concept. But Apple has made some steps to curb that behavior (passwords for IAP content).
Even if you DO appreciate the value of money, a buck here, a buck there, over time it adds up quickly without you realizing.
Sometimes I get credit card bills and I'm a little shocked at how much the total is -- I only spent $20 here, $30 there, ... yes, it all adds up.
I've noticed a huge shift in the way I think about online transactions including app purchases over the past several years. I was very reluctant to give Apple my credit card number at first for iTunes store purchases. But now I regularly order apps and music. "A dollar? Sure, why not. *click Buy*". And I think Apple knows this, and this is how they turned around from a struggling manufacturer of expensive computer equipment to the media giant they are now. From selling $1799 computers and $499 music players, to selling millions of songs and apps, 99 cents at a time.
notjustjay, I'm not targeting you directly, you just happened to say something that I wanted to address.
A lot of transactions are handled a little bit at a time. Very few people have the cash up front to pay for a house, car or even a cell phone. But with a (relatively) small upfront cost and small (compared to the total purchase amount) payment, we can afford things we wouldn't otherwise buy.
I know it's a stretch comparing a $5 smartphone app to a $300,000 house, but in each case, there is some utility gained from each purchase. It's a psychological effect that's nearly impossible to turn off in all of us. And it's not that it bothers me that much in theory, just that there's a d*ck way to do it and a non-d*ck way to do it.