From the lessons he learned during his app store experiment, and how he saw a massive boost in downloads and daily revenue once he went from a paid app to a freemium model:

IAP increases revenues – For better or worse for the ecosystem as a whole, it’s been proven over and over again it makes more money.

Stuart’s experiment is just one data point, but it seems more and more developers I’ve talked to are seeing the same thing and feel that .

Like Moltz, I much prefer to pay a few bucks for an app, than to buy an “upgrade” through an in-app purchase. But, what I prefer even more is for my favorite apps to stay in active development over the long run.

Also — just putting this out there as food for thought — but here’s a zinger that really stood out to me from the aforelinked Gary V. talk:

The quickest way to go out of business is to be romantic about how you make your money.

Stuart Hall’s Lessons Learned About IAPs