You're completely overstating it.
I think the in-app purchase model is great and makes perfect sense. Remember that you are getting the game for little or no money in the first place - essentially you only end up paying additional money if you especially like that particular game. If developers try and charge too much for IAPs then no one will buy them so in some respect it's self-policing, and the times I have paid for additional content in games like
Plants Vs Zombies and
Jetpack Joyride (no more than £1.99 on each occasion) I have been more than happy to do so becuae they were great games. Surely that makes more sense from an economic standpoint compared to the traditional business model of games where you must pay a (usually substantial) one-off sum for a game that you may not even like or play enough to get your money's worth?
These type of games to me seem like a regression back to the 80s when folks went to the arcade and pumped endless amounts of coinage into the various games machines. I wonder how many people playing these kind of games bother to add up the total amount of money they've spent on them over time? I have no idea of the costs involved in playing JD vs. Zombies on a regular basis and that is the very thing that would put me off.
The arcade comparison is inaccurate - it's not as if you are charged every time you want to play it - and the IAPs are
100% optional. As I have said before, I fully completed
Dredd Vs Zombies and didn't have to pay out for any of the upgrades. It was difficult, and I wouldn't have minded paying more as I loved the game, but I enjoyed the challenge of doing it without the payed advantages. People are so impatient these days that they might want to use the option of paying a little money to make the game easier - that's their choice.