Developers should welcome this change, as managing a single application is much preferred to managing two distinct but nearly identical applications--bug fixes and new features will only have to be added to one code base, only one app will have to be uploaded to the App Store, and Apple will only have to approve one version of the program.

It will be interesting to see if this change helps drive prices down even further in the App Store. The question is whether a developer can drive more demand (and eventually, revenue) from a "free" version of their app with some locked-off functionality, or from two separate applications, one fully-featured with a price tag, and the other a permanently feature-limited free version. If developers think "free + in-app purchasing" will drive more revenue, then we will eventually see even more "free" apps appearing on the App Store. As a consumer, I know I prefer the easier app management that comes from the one-app solution, but it will be the developers who determine which types of applications we'll see going forward.