Needs a better shareware model
First, I'm pretty surprised at Handango's claim of $25 average price per app. I've owned a hand-held for about ten years, I've bought games, email clients, office apps, media players, tons of stuff, and I'm pretty sure I've _never_ spent $25 on an app.
But it seems to me the reason no-one pays higher prices for iphone apps is that there's no try-and-buy model. You have Free, or Paid. I'm just not going to buy an expensive app without trying it out. So far I've tried literally dozens of free apps, and several 59p ones. I've bought two £3+ apps based on reviews, and was disappointed with them both. And I've bought one £6 app I'm happy with - because it was a port of a palm shareware app I'd already tried out and trusted.
If developers want us to hand over the cash, we need a way to try stuff out and upgrade. Time-limited software, leased software models (the user is online all the time, why not charge them for use?).
If apple need to help with that, then fine - but believe me, the problem isn't that I can't see your app on iTunes. It's that I just ain't gonna buy it on your say-so :-)