Some apps currently on my phone:
SPB Mobile Shell $29.95
SoftMaker Office $79.95 (!!)
Copilot Live 8 $34.95
Obviously I think there are apps that are worth a lot more than $0.99
These apps are well written, well supported, and extremely useful; well worth the money I've invested in them. If the standard were $0.99, I doubt they'd exist at all or, as suggested earlier, they'd be saddled with a _major_ "subscription" fee.
I prefer the basic capitalism approach: If people think the price is too high, they won't buy it.