Not necessarily better yet. In fact you've completely missed the point. Recall the post about the company making $1000 per day on their iPhone app. They sell it for $25 and have staked out a niche. Meanwhile hundreds of other apps try to aim low and wide and for the most part make nothing because they charge too little and can't make up for it in volume. The point of the post is it's easier to sell something to 1000 people than 200,000.

Unless you hit a lottery, it is incredibly hard to reach 200k people.

Luckily you only need little less than 17,000 people at $5/mo. Not 200k.