Definitely not better for users. You used to buy an app and get everything it has to offer. You wouldn't have to worry about getting a useless app and having to pay another $1,000 to get it functional. And you'd know that any reviews of the app are inclusive of functionality you'll have access to.

With IAP, it's really difficult to know what you're getting and how much it will cost you in the end. And reviews may be discussing a completely different app experience. Plus the constant feeling that you're being nickel and dimed.