False.
If you had an iPod Touch running software version 1.1.2 or below, and you wanted to migrate to 1.1.3, the upgrade was free. Period. End of story.
Same story for upgrading from any firmware versions 1.1.3 or below to firmware version 1.1.4. And now again for 1.1.5.
Simultaneous to the release of software version 1.1.3, Apple released a "January Software Upgrade", offering new features such as the Mail app.
This was a separate product, and installation occurred as a response to a separate user-initiated action. Installation of the JSU could only occur on an iPod Touch that *already* had firmware version 1.1.3 or above installed.
Of course you can claim those fees were optional and deniable, but to gain the benefit of each update you had to pay the fee, whereas iPhone owners did not.
To which the response is that 1.1.3 and 1.1.4 (and now 1.1.5) included the benefit of bug fixes.
The JSU applications were still separately sold items, which may or may not have been pre-installed at the factory, depending on the vintage of the iPod Touch.
So in summary, you're right in saying that Apple did charge for new features. This was the JSU, which cost $20 (and is akin to installing applications on a computer with an exiting operating system), and firmware version 2.0, which cost $10 (and is akin to a whole new operating system).
You're incorrect in stating that there was any charge for firmware versions 1.1.3 (or 1.1.4, or now 1.1.5) by themselves.
