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> However, why would one chose an option that would cost them so much when the other, existing option costs nothing?

Yes that's the point. In my scenario I was wanting to distribute this on a different app store than Apple's, which forces me to choose the new terms.

Your question there is the exact question apple expects people to ask themselves, to dissuade them from supporting other stores.

The old terms lock you into the App Store, no?

Aren't there restrictions against using GPL stuff in the App Store?