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(lemmy.world)
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You make valid points, however, I'd like to point out that most games on the play store don't cost a lot because the real costly transactions are in-app purchases. It's common, in my experience, for the popular free apps to have IAPs upwards of $100 for in-game currency.
There's also that matter of the no-cost version of the app. It seems perfectly usable, making the ad-removal an optional purchase.
Considering the smaller user-base and the finite economic value of life-time purchases I'd say $20 is fair. But that's my stated opinion and I have yet to put my money where my mouth is.
Very good point regarding micro transactions.