A lot of the people who don't care about the $5 fee are viewing this whole thing from the wrong perspective. Sure, $5 is nothing if you need xcode for your job, or if you use xcode extensively and merely want to upgrade. To you, this probably seems like a dumb argument, but again, that's because you're not taking all views into account.
The problem is for novice programmers who tend to experiment with all sorts of languages and IDEs. It's not worth it for them to spend $5 just to try something out that they may not ever use again, especially if they're on a limited budget (and can't even afford to eat lunch at McDonald's once a week). I'm thinking students and younger people (I started programming when I was 10 years old). In this light, the current "xcode for free" is much like the free software trials that expire after a certain amount of time. The only difference is that if you want to use xcode for iOS or Mac, you need to pay the $99 fee to get going.
The whole "it costs money to develop xcode" or "I used to pay hundreds for this back in my day" is a BS excuse primarily because #1 this is not "your day" when you walked five miles in the snow to school, and #2 if you've ever watched an iOS keynote, one of the main points driven home repeatedly is the number of apps Apple has in its app stores, all of which are developed by $99 developers. It doesn't make a whole lot of sense to create artificial walls for potential developers when active developers and their products are the reason Apple has gained hundreds of dollars on their stock price and continue to make billions and billions of dollars. Just as thousands of companies give you free entertainment (commercials) in hopes of you buying their products, Apple used to give you xcode in hopes of you developing for their platform.
Finally, some of you are seeing this as the "entitlement" generation. I don't see how that's so. I don't think people feel they are entitled to the software; they simply are pissed because they have to pay for it. Yes, there is a distinction between the two. You just can't imply that someone feels entitled because they want it for free. For example, being upset that the food samples they give out at the store are no longer there doesn't mean I feel I'm entitled to the food. I just liked the free samples, and I'm unhappy I no longer have the opportunity to sample something before buying it.
Now I don't have anything against Apple, and I'm not going to call them out for charging the $5 since there's probably some dumb reason for it, but I also don't have a problem with people complaining about the new fee.