i'm with you however, i think that you are forgetting one very important variable. people will pay what they believe it's worth given their notion of the perceived value according to their "situation"
you gave an example of a music band offering music online and allowing fans to pay whatever, but i wouldn't be surprised if that band's "market" base consisted of "kids" who don't have a whole lot of money. it's all about expectations and those expectations differ depending on the group in question.
i was recently in philadelphia and my girlfriend and i went to the philadelphia museum and they have a system where on that day you could "voluntarily" pay whatever you wanted for admission, you could even pay nothing if you wanted to and still get a ticket. out of curiosity i hung out at the ticket center to see what would happen. almost everyone who got a ticket paid the regular ticket price. however, keep in mind the people going in were adults (with the expectation that they were going to pay full admission anyway) and people with an appreciation for the arts and a desire to support the arts. in fact i didn't observe anyone who didn't pay anything.
the problem with the app store and the iphone user base, is that you have a lot of "kids" or non kids who feel that anything that isn't a game should be "free". that's the expectation that they have. unfortunately, they're also more vocal than all others. so you hear their complaints more often
It's attitude as well. Radio Head stated that a lot of dirtbags would send them a penny, or 2 cents... That's just being a jagoff, any way you slice it. As far as I'm concerned, if someone has to complain about an app being .99, you shouldn't own a cell phone, let alone an iPhone. I do understand that $16 is a premium price, but there ARE free alternatives. The problem is, people want ALL the features that the premium app has, included in the free versions. I'm very happy the review system now only allows for people to comment who actually paid for the app.