Encouraging developers to go higher end doesn't seem like a healthy decision . If there is a perceived problem at 4-5 dollars wouldn't it still be there at a higher dollar value? Sounds like Apple really needs to work on the underlying cause of why users think games aren't worth anything on their platform.
More walls in the walled garden could actually be helpful towards creating a space in which users feel comfortable that they wont get some crappy IAP filled low quality time waster. Taking the time to make sure audiences can see such apps is true as well.
Many mobile users are kids and early teens unless using their parents Credit Card can't afford anything other than free. That may be a pretty big part of the perception issue as well.
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