It's really very simple. If you don't want to pay $10 for Pac-Man, then DON'T! If yo uthink you "deserve" Pac-Man on your phone at a cheap price, go program it and release it cheaper. If you think that the price is too high, and enough people agree with you, then they will see that their game is not selling, and they will offer it on sale to offset the cost of not selling enough copies of it. Essentially, Developrs can and SHOULD charge what they think their game is worth. People will vote with their dollars, and the market will correct itself. I am willing to pay for a game if it is a quality game. I don't care a thing for Pac-Man at $9.99 or $0.99 so they won't get my money either way, but I had no problem whatsoever forking over $9.99 for SMB, it was worth the price to me. Some games, I will wait to see if the price goes down. If it doesn't, then I decide if it worth that price to me or not. I don't understand why so many people are willingt o fork over hundreds of dollars on an iPhone/Touch, but think that all good software should be free or "cheap." I remember when we used to pay $150 for an entry elvel Palm handheld, and $40 for the office suite to go with it, or $20 for a good game. As much as I jump on the chance to play a great game for free or for cheap, for a device that rivals the DS and PSP in terms of quality, I don't think $9.99 is asking too much for a quality game.
Then there is the issue of sponsored games. This is a great idea. I have been in marketing and advertising for a while. I don't know about this particular example (I am just assuming and using an actual game to make my point) but I am willing to bet that the creator of the Fat-Free Video Poker game got a lot more money from the advertisers in the sponsored version than the people who fork over $1.99 for the paid version. In marketing, we pay good money to have 10,000+ people download your free app and see our ad everytime they fire it up to play. It's a win-win. The app is free, so more people download it, and the more people that download, the farther our reach is extended. Again, I don't know about that particular game, but it made a nice example.
/end rant