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They had a part of their library drm-free for a while now. I find it more surprising that they changed their position on their pricing scheme. Didn't they even cancel their deal with NBC because they were not willing to allow flexible pricing on their videos last year?

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I think entire catalog DRM free + iTunes Store over 3G (instead of just WiFi) were pretty good reasons to finally allow variable pricing.

The DRM-free portion of the iTunes library cost extra money, and most tracks didn't have that option.

My uneducated guess is that the 1.69 pricing tier is a trade for stripping DRM off the backcatalogue.

DRM free tracks have not cost money for the last year.

I-did-not-know-that. (Stop upvoting me for being an idiot!)

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