Don't start off engaging in the race towards all apps' pricing going to zero. Because it will. Someone is going to clone your app and make it a $1, or free. There's more than enough time for those shenanigans, so you might as well price it somewhere where some people might think it is steep and you think is fair. You can always bring it down as a "limited time sale", but it will be hard to raise it if you price it too low to start.
My counterpoint to this...
Don't start off engaging in the race towards all apps' pricing going to zero. Because it will. Someone is going to clone your app and make it a $1, or free. There's more than enough time for those shenanigans, so you might as well price it somewhere where some people might think it is steep and you think is fair. You can always bring it down as a "limited time sale", but it will be hard to raise it if you price it too low to start.