> A beginner who is neither sure nor convinced that programming is a good thing to pursue is unlikely to spend even a footlong's worth of money on it, and we've lost yet more potential future engineers.
Sure. And Xcode would probably scare them off anyways, because it's decidedly not set up to be friendly to beginners. This is a non-issue. Beginning programmers on the Mac should under no circumstances go grab Xcode unless they want to feel utterly bewildered.
The $5 charge is utterly beside the point, here. One wonders how you imagine anyone ever gets into a hobby with more than a $5 barrier to entry.
> Also, the fact that Apple has poured a significant investment into building these tools says nothing - they've been pouring a significant investment into their dev tools for years and offered it for free.
They seem to have drastically increased the amount of effort they're putting into it, probably because of the increased iOS dev audience. That extra effort probably justifies the minor $5 price increase.
> Their competitors have also poured enormous sums into dev tools that are available for free.
Which competitors would those be? Microsoft isn't giving their professional tools away for free, just a drastically cut down starter edition. Sun plowed a ton of cash into NetBeans, but following their financial lead seems ill-advised.