I don't have any particular problems with the 1.49 price point (and I kind of wish the iOS app store hadn't set a standard where a $2 or $3 app is considered "expensive"), but how does an extra $.50 prevent crappy apps?
That said, I agree with you - I hope it successfully makes apps in the $2-$10 range more popular, which means developers can invest more time in them and make them better.