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My guess is $0.10 might be cheap enough to motivate people to jump the "pain in the ass" bar that is entering credit card data.

The fact that Apple forces iTunes sign-up before you can use the iPhone gives paid iPhone apps a huge advantage over Android Market apps.

And it works... I just updated my Wallet account with my new credit card number. It's been months that I was like "Oh... no I'm not buying that 2$ app... I'm to lazy to update my credit card". And well, now I have 10 new great apps I bought for 1$ ! And ready to buy more.

Damn... I'm being manipulated and actually liking it :-).

I can see google wanting to have your credit card number in file to ease future purchases ;)

I believe if you make an app free on the Android market you cannot then go back to charging for that app, it is a one way trip.

Paid apps are permanently associated with your Android Market account, unlike free apps.