There's another half of this argument though, and that is the people who complain that an app cost's $0.99, saying instead that it should be free. No one is standing outside of Starbucks protesting that the coffee should be free. Most times that I hear the app/cup of coffee analogy is in response to this complaining.
Anyone who argues that because it costs $0.99 it should just be free isn't worth debating with.
On the other hand there are documented cases where charging more like $9.99 instead of $0.99 increase sales because the higher costs increases it's perceived value. People are familiar with the saying: "you get what you pay for."
