We read MacRumors whenever we can. Although we rarely post, there is much we learn in the forums, and threads about us are no exception. We appreciate the feedback - and the support. In this instance, there are several matters I wanted to clarify.
1) the original Simplify app is not discontinued. Very recently we released v1.2.2 with bug fixes to make in compatible with OS 3.0. If OS 3.0 changes before release and breaks 1.2.2, we'll release v1.2.3. In addition, yesterday's (free) desktop update allows iPhone v1.2.2 to play FLAC files (a new feature).
2) as the OP states, when we knew the new application was getting close to launch, we put Simplify on sale for the first time ever. For the entire time it was $.99, the app description said, at the top, that the reason for the sale was the release of an all new application:
"To make it easy to buy now and change to the enhanced version later, we are lowering our price for the first time ever. Purchase Simplify right now for $.99 as part of the "2.0 is coming!" sale (instead of the regular $3.99 charge). Then, if you like the new features, buy Simplify 2.0 at the special introductory $2.99 price."
3) No one needs to repurchase. If you are happy with the original version, keep using it. If you think the new features are worth $2.99, we would be delighted if you purchased the new app. For completeness, the new features available only on Simplify 2 (so, in addition to FLAC) are: search across multiple remote libraries, favorites, edit favorites to create a playlist, and a scrub bar.