I'm willing to pay for a good games that don't annoy me asking for more money, but see almost nothing to pay for. (I'm only talking about mobile here, desktop games market is totally different.)
That is, when I got bored I had browsed Play Market for a while and I'd say - subjectively - options where you buy a game and that's it - you enjoy the whole thing, as advertised, right to a solid logical ending, without anyone persistently asking you to take your wallet out again (to remove ads, to buy some in-game advantage or to access further gameplay) are astonishingly rare.
Crap, even Baldur's Gate is now with in-app purchases and DLCs. (But, again, not on desktop!) Guess, that must be something related to stereotypes and cliches, not real business models.
</rant>
To change the dominant business model, you need to come up with a new model that generates more profit. That is exactly what has happened here.
A thing is only worth what someone is willing to pay for it. I'm less concerned about expensive IAP than I am about the people who pay for them. But then I think: So what? People will pay too much for all sorts of things. Who am I to judge.