The problem of course is that every other conumer electronic doesn't require the fees. My xbox, ps3, psp, wii, zune, ds, would all NOT charge for software updates of any kind. The game consoles in particular have had just as much functionality changed an iPod touch.
Hey, I do Health Care reform, not accounting, so I can't really explain it to you. Basically though, when you get updates on your consoles, you're not adding any real functionality to them, unlike adding mail, voice recording, etc. for what the updates did for the iPod touch. Regardless, neither of our feelings changes the fact that it's been in existence for the last 7 years and that's why you need to pay. Or you can, you know, skip an update if you don't want to pay for it.