I'm of the opinion that Microtransactions are really not that bad in theory, but far too few developers are offering adequate content for the price they charge ...

Mario Kart is the type of game which is well suited to additional downloadable content, and if Nintendo decided to charge $5 for a circuit of tracks, a couple of extra racers, and a couple of additional power-ups I think it would be well worth the cost. Most microtransactions are not this "affordable" and you would (probably) be charged $1 to $2 for each track, racer, and power-up and this collection of items would (potentially) cost up to $20.

That's probably why companies such as EA like this idea. Microtransactions have a very high profit margin... If microtransactions catch on, it will be easy and cheap to have a team churning out small updates to a game after it's released. It must look great in the financial reports!

 Exactly, it's simply a matter of value per dollar. And the comparison which was made with PC game expansion packs is an apt one. For about $40, you could expect a PC expansion to get you 50% to 150% more content.

What DLC allows you to do is slash your distribution costs and release content in smaller — and cheaper — chunks. Some publishers will do this in a foolish way which is insulting to their customers (horse armour), that doesn't invalidate DLC as a useful product model.

Bad deals are everywhere. Hating DLC because of things like horse armour is like hating cartridges because of Superman 64 or television because of Full House.