No one but irrelevant nerds think this. And the market has demonstrated this time and time again.
Most people think of phones as being console-like entertainment devices. And aren't interested in scams, malware, virus checkers etc that are needed in a free for all model.
Many companies would never use Apple's IAP regardless of the cost because companies want a direct relationship with their user for things like refunds and trials and other stuff.
My immediate interpretation of "direct relationship" is one part "we want your email to send you marketing spam" and one part "we want to add as much friction as possible to cancellations".