There seem to be two arguments going on here:
1) Is the price fair, and
2) Should 'crap' games be allowed in app stores?
#2 is really subjective and a bit offtopic IMO, but back to #1 for a moment:
[QUOTE=HotGod]Again, the focus of my points is not the price/s. It's on the 5 apps/games per year limitation.[/QUOTE]
Another way to look at it is if you have 6 games on a server, you're going to have to pay a higher rate for a higher bandwidth server. Suppose you have 5 games, each 5mb, and each being played 5000 times a month (note some games in our arcade have had 10k+ plays in their first day). That's 125 GB/mo transfer of bandwidth. Chances are you're not going to get away with a bottom-rung server for that and your fifth or sixth game is going to force you up to the next level server, which could be, say, $200 a year instead of $100 a year. Obviously nobody can host 8-12 popular games for nothing, so they have to stage it one way or another, and rather than fiddly bandwidth limitations you just get a number of apps before the next level.
Besides, how many people have already published 5 apps? If each takes you 2-3 months to finish, that's about a year's work, so you get away with the lower price for a year. So I still don't see anything wrong with it.