I think that the best way to make a lot of $ on the iphone is to price your app $1 or thereabouts. Better to sell 1M people your $1 app than 5000 * $10.
I think it all depends on the kind of app. If it's a silly little app that anyone could find amusing then sure. If it's a useful app that only a certain subset of iPhone users will find useful, then maybe not.