I know I have walked in to an Apple store and purchased an UPGRADE disc for $29. I will never forget this because when I later decided to wipe my hard drive and reinstall the OS, I was stuck because it was an upgrade only disc. I believe it was a Tiger upgrade disc.
More recently, my boss went in to an Apple store and bought a $29 Leopard upgrade DVD that I have at home. I can not use this disc to do a full installation.
So as I understand it, $29 gets you an upgrade disc and I would assume the standard FULL installation disc is $129. Apple's marketing department is putting a spin on this to full the press and it's customers.
I posted this question on the Apple board and got my question removed due to rumor and speculation! Considering Pogue's recent article, I think the "rumor" of the $29 Apple OS X installation DVD needs to be put to rest. There will be a lot of unhappy customers trying to do full installs with an upgrade DVD.
Apple has never before sold a $29 upgrade DVD for any operating system that was within my lifetime. We don't know how they will handle this because they've never done it before. They shipped "drop-in" DVD's with computers that were purchased during the limbo time between the operating system being available and it being installed on new machines, which are as you described (they require a previous installation to function). However, those disks were free of charge to those customers, and not available for sale. If you bought one of them, you bought it from someone who should not have been selling it.
Hate to tell you dude, but you're dead wrong. I've been selling Apple's products for a long time, and you did not do what you claim to have done (buying an upgrade-only disc).
jW