Nobody seems to bring in the law of economics. The reason we have no problems dropping $4 for a coffee is because it's a physical good that costs the producer $ every time they make one for you. Apps, on the other hand, are unlimited. Once an app is created, it costs nothing to make in unlimited quantity. There is no "additional services" provided with most apps that will make people happy to pay for (most apps; some are now free with in-app upgrades).
The point isn't the price. The point is the services, and costs of reproduction: Hey, I have an unlimited quantity of X product that costs me nothing to keep in stock, but you must come down here, yourself, look at the product yourself, find me, yourself, and still pay me to give you the product.... that doesn't sound right. And their reason is just: it costs me $ to make the first initial product.