Ah. The former model is what I suggested in my original post. I must have worded it poorly. I too, will not use ad-supported apps beyond testing functionality. It drives me crazy when there is no paid ad-free version.
Read what I was replying to: "Try in-app ads with a lower cost ad-free version (say $1). Or add features that are both extremely useful and hard to duplicate for a competitor that is working for free. Some ideas: GPS proximity alarm when passing a grocery store, or a tie in to a desktop client or website."
