This does little to entice jailbreakers to go "legit" and add apple apps. It's not the fee that upset me but the history of apple. We have seen the iPhone get free apps and updates and it needs to do this to stay competitive. iTouch has no competition from other mp3 players so they charge us.
$20 multiplied by the 1/2 million or more iTouch players sold is greedy. I would have paid $1.99 for the update with no quams. It is the fact that I feel like I'm paying for the free updates that iphone and apple TV got by purchasing apps that existed when iTouch was released and should have been bundled from the start. It's the everybody got something but me feeling.
It's not about the money it's about apple saying thanks for buying this and showing it to your friends so they would get one and hey here are some free apps (that everyone hence forth will get) to show our appreciation.