Hmm, I think I can give some input from a developer perspective. My game, Red Card Rampage, is 99c on iPhone, but $1.99 on iPad. To be honest, unless you happen to be the person that made Angry Birds or Doodle Jump, there isn't a lot of money to be made if your app is 99c. As such, we released an iPad version that is $1.99, and hope that the popularity of the cheaper 99c iPhone version can drive sales of the more expensive HD version for those that have an iPad. And no doubt also, that the game looks far far better on iPad than on an iPhone 3G. Even compared to the iPhone 4, our iPad version has more real-estate that we leveraged by having a user bar at the bottom which the iPhone 4 version does not (although the iPhone 4 version looks really amazing too due to the higher dpi).