1. Two of the authors arguments for higher prices is "more intelligent users" and "less support queries". Those strike me as incredibly snobby reasons to set a price tag. In the case of the latter, if you're selling software then you have to be expected to support it (I know customer support is an absolute pain - I hate it as much as the next person. But think about things from the consumers perspective. You'd be pretty pissed off if you've paid for a product that doesn't appear to work for you and you're clueless about how to fix it). As for the "more intelligent users" remark - I think that level of selective pricing is just disgusting.
2. The article neglects to mention that there's room for two different business models: free versions subsidised by ads and non-free but without adverts. While it sounds like the author does have an ad subsided free app on the market despite his arguments about the merits of premium versions, quite a few publishers seem happy to release against both business models concurrently (ie they'll have both a free and a premium version available). I don't have figures about how successful that strategy is (if anyone else does, I'd be interested to read them), but I think the theory of that works rather well as you're combating the piracy / freeloader issue with the ad subsidised versions and have a premium version available for the aforementioned snobs and those who just hate adverts.
3. The whole article amounts to little more than price fixing and arguments against a free market. The very reason prices are so low is because the market is saturated so developers undercut each other to get sales. If the author doesn't like that, then perhaps he should switch to a market that isn't saturated rather than demanding that everyone is owed financial reward for their work - even if their product is unoriginal and available "ten to the dozen". This might sound harsh, but it's little different to any other industry. eg if everyone became window washers tomorrow, there would be more people washing windows than there would be houses with windows needing washing - so the whole market would collapse. And it's a similar case in mobile app industry, the market is far to saturated to guarantee every developer a decent wage.
I hate being negative like this, but I'm so sick and tired about hearing people moan that they're not earning as much as they think they should be while working in a saturated market. And the remarks about tailoring his prices to the "intelligent" was just unnecessary in my opinion.