>>>They can sell Mp3s but not for 99 cents a song... especially when Angry Birds costs $1.99.
Now wait a minute there. What about an eBook? What about a movie or TV episode?
If Angry Birds for $1.99 is the price standard for everything, you're setting up a trap that most everything is going to fall into.
I've tried Angry Birds on demo tablets in stores -- and countless YouTube videos demoing tablets -- and I don't see the appeal. Even free, I wouldn't want it. Most games simply don't appeal to me. I'd rather read or listen to music or watch video.
Angry Birds might be worth $1.99 to you, but to me it has negative value.