sometimes, when people don't have to pay for something, they don't appretiate it! By paying for the updates, we basically are happier with them! Silly, I know, but it's just in the human nature!
I dunno. I think most people appreciate the iOS updates. It's kind of nice knowing that you don't have to worry about any updates, that they are basically automatic. Plus I don't think Apple really cares if people appreciate the update, so long as people appreciate OSX, which they will.
So here is my reasoning for free, automatic OS updates.
Nearly everyone will be on the most recent version. This helps Apple not have to support old OS's as much (customer support, bug fixes, compatibility etc). Helps all devs not having to support old OS's as much. It gives the users the best possible impression of OSX. For example, if a user has a 5 year old OSX and it's time to buy a new computer they may be less likely to buy another Mac than someone that has the absolute most current OSX, because the 5 year old OS probably won't look as appealing vs the competition. OS X should have it's best foot forward at all times. Plus keeping all users current on their OS will help keep the users all current on upcoming features, such as iCloud.
If they aren't free, then yearly updates will cause OS fragmentation more than ever. Right now OS X is mainly split between Leopard, SL, and Lion. With yearly paid updates for the next 5 years I could easily see all 5 OS's split relatively evenly as different people choose not to update for various reasons. See all the reasons above for why this is bad.
I see it as a huge selling point. Free yearly OS updates! This is a lot more appealing than buying a windows and either A) never updating it or B) having to pay a few hundred dollars every few years. OS X will be more exciting and dynamic because it will always be changing.
It will create a shorter upgrade cycle for Mac users. Remember, we here are MR are in the minority of computer users. Many people buy their PC/Mac and then don't upgrade for 5-8 years, often never even updating their OS once. These people don't care if they are running the latest OS (or even if their hardware is capable of running the latest OS), because they rarely will update it. I think if Apple offers free yearly OS updates, it will create a culture of wanting/expecting that update every year. Once their hardware is no longer supported (4-5 years), it will signify that it is time to purchase a new Mac. Not everyone will, but I think many more will than do now.
That's all I have for the moment.