[vais]

For the sake of preservation of the market itself. If my only option is to make my app free just because others have discounted their work beyond reason, I may opt to no longer deliver any new products to such a market (give up on it), and pursue other markets instead. This benefits neither the developers nor the consumers.

[Frazzydee]

That's a good argument for why Apple should allows you to set a lower price, but I still don't understand why other developers should raise their prices. Especially if $0.99 is the optimal market price that generates the highest revenue, and the only consequence is you leaving the market.