The point of an App Store is to be a place where it's acceptable to charge money. Customers come in (at least to the paid side) expecting to pay. I would never pay $1 to login to http://www.runpee.com/ but I gladly paid $1 for the mobile app (http://www.appstorehq.com/runpeemobile-iphone-46448/app).

People have been taught that stuff that comes through the browser is free. GOOG (and MSFT?) wants more stuff to come through the browser so that people will spend more time on the interet, while AAPL just wants people to spend more money. For the sake of developers, I hope AAPL wins.