Yes, for an item of quality, people will pay more. But for a cheap convenient item, more people will pay
When in recession, like now, I sell more of my (relatively) cheaper cosmetics (I own a drugstore). Big stores tend to see their sales fall...
So, if income-wise, (less people X pay more) = (more people X pay less), the second proposition has the merit of making more customers happy. The first proposition, though, has the merit of being a nice marketing stunt when shown to stockholders
edit: I've been thinking about desoltemm's proposition, and while it has merit, I just can't get over the fact that I like to own something I pay for. It doesn't have to be a physical thing, but at the very least something I can print in the case of documents. Jo so I can still use it if my connection to the net is impossible for some reason.
re-edit: Come to think about it, I've got another reason to be reluctant about the iPad/iPhone platform. I've found that those can get quite distracting while gaming. In my turn, I'd have opponents check their email, or download the latest movie trailer "just to show me...", etc... I've asked this opponent (which is my best friend!) to cut back on iStuff use while gaming.