I don't own an iPod Touch or an iPhone. I do, however, own three iPods, and have received (collectively) several firmware updates from Apple for them, none of which I had to pay a penny for. None of which would I have been willing to pay for merely an update to. Period.
I think the pro-Apple-charging folk here and elsewhere on the board are missing a very essential point made by this thread starter, as well as by others, and that is a grievance with Apple over paying for the same kind of updates on an Touch that would nominally be free in any other kind of context. We don't pay for updates to software (generally), nor to our OSs, nor the bundled apps on our Macs.
What is so absolutely hard for you folks to get through your heads about this? The OP and myself are not saying "We shouldn't have to pay for new apps, or new releases of apps," but "We shouldn't have to keep paying every time Apple revises their stuff."
As regards the often-sited SarbanesOxley, I really don't give a flip about that law. I don't see how it rationally could apply here, and Apple's invoking of it (or others' invoking of it on Apple's behalf) merely constitutes a cheap excuse to justify repeated bad acts.