I disagree with the cheap / free and then 'capture extra value' model, purely because I personally hate games that do that. That's not to say that it doesn't make good business sense, just that I wouldn't enjoy making those kinds of games. If it was my livelihood perhaps I'd feel differently, but I'm very happy being in a situation where I can make exactly what I want, for the market I want! (full disclosure: I'm the guy that wrote the blog post).