Not necessarily better yet. In fact you've completely missed the point. Recall the post about the company making $1000 per day on their iPhone app. They sell it for $25 and have staked out a niche. Meanwhile hundreds of other apps try to aim low and wide and for the most part make nothing because they charge too little and can't make up for it in volume. The point of the post is it's easier to sell something to 1000 people than 200,000.
Yes indeed. Additionally, people forget with app sales: There aren't that many potential clients. Even if they get everyone who'd buy their app if they knew about it, they still don't top out at silly amounts of money.
Plus, unless you're selling insulin to diabetics, making 200k sales on the Internet probably means having 2MM to 20MM good prospects. Not visitors from Techcrunch, not uniques on your blog: millions upon millions of qualified prospects. That is highly non-trivial. Then actually converting them is also non-trivial.
There is a huge difference, both in real terms and more importantly in psychological terms, between $5 a month and $5. Most people requite far more incentive to sign up for a $5 a month service than they do to buy something for $5.