But there is more to it: I was trying to find a way to use the App Store infrastructure to sell a bookmarklet. I think this is the first time this has been attempted - only time will tell if this scheme gains acceptance, or, as you suggest, people will balk at the idea of paying for apps that simply copy a URL to the pasteboard.
Last note regarding "...a lot of people, who are used getting a lot more for that price..." - I think this is more of a testament to the sad state of the App Store than anything else. $0.99 is the lowest price the App Store lets you charge for an app. Below that is free. Since I cannot go any lower than $0.99, I think the developers whose apps deliver more value than mine should charge more - not the other way around. The fundamental problem with with the App Store is that this mentality took root and flourished, creating a race to the bottom.