Price elasticity also depends a lot on the type of app and marketing. I've seen the sales numbers for an app where increasing the price from $0.99 to $1.99 and ultimately to $2.99 had corresponding drops in sales where the revenue was actually kept the same. This app is very popular through word-of-mouth and blog recommendations which is the key. If you're relying on sales through search results and rankings it might be more price-sensitive.
John mentions having to redesign for iOS 7, but the reality that there are many of these events that mean that you have to keep developing. New iOS versions, new screen sizes, WatchOS, (tvOS), new input methods, updating UI, all add up to quite a bit of work just to stand still feature wise.
I think the days of making money on the App Store are gone.