Paradoxically, I think the power of the tools, resulting in the ease of development, and the democracy of the Apple Store is a major contributor to the difficulty of competing for user mindshare, and the resulting low prices.
I'd even add that this was what the internet promised. A reduction of the barriers between creator and consumer. No more would those pesky publishers/editors/distributors get in the way. Sadly I think we forgot that Sturgeons law still holds.