The latter sounds like an unholy mess, the former is very annoying as a developer, since you lose all of your reviews and history, and customers generally don't really understand how to download apps they've purchased which are no longer listed on the App Store, and presumably you'd pull OmniGraffle v7 from the App Store.
Also, right now in the U.S. Mac App Store, you have 3 reviews on the current version of OmniGraffle, and 2 out of 3 are 1 star reviews complaining about the way your free trial is presented.
The Mac App Store is a broken mess.
I agree that it's sad to lose all our previous reviews, especially as our earlier apps had very high average ratings. But the bigger issue is combating confusion, which leads to bad ratings when people miss a feature that the app actually has, or are confused when a "free" app actually costs money. I'm hopeful that being able to reply to confused customers will help to clear some of that up!
If you read my latest blog post on the subject (linked in my first comment in this thread), you can see full details on how we're offering upgrade discounts to all existing customers, free upgrades for recent purchases, and free trials so new customers can check out the app before they pay—all in the App Store.
In the case of OmniGraffle 7 the free functionality that it retains after the trial expires is that the app can continue to be used as a free viewer for OmniGraffle documents (in much the same way as people use free PDF viewer apps).
When we first shipped OmniGraffle 7, some people thought that perhaps we'd just managed to slip its free trials past some Apple's reviewer's radar. But we were very careful and intentional about designing the app to follow their guidelines, and we've shipped several updates that have passed review since then--and at the end of the year Apple awarded the app a "Best of 2016" App Store award.
So now that we know for certain that Apple is OK with this approach, we're in the process of bringing this model to the rest of our apps on both Mac and iOS.
I assume Apple did not have a problem with your use of the "Free Trial" wording in the app? After the trial period expires, does the app display a launch screen directing you to purchase the full version?
After the trial period expires, all documents are read-only with a small badge in the title bar that you can click on to bring up the in-app purchase choices.
Are you aware of any other Mac apps that use this model, or any rejections for the same?
I shared more details about this on our blog a few months ago:
https://www.omnigroup.com/blog/providing-the-best-possible-a...