It's important to recognise that we're talking about a shovelware market. If people want to pay $2 for a piece of software, most of that software is inevitably going to be least-common-denominator tat aimed at getting noticed and scoring a quick buck from enough people before it gets lost in a sea of other tat.
It doesn't really matter any more whether it started because of the app store model, or the early developers choosing very low prices like many other new businesses even though they could have charged more, or dare I say cynically pitching instant gratification to a market full of young people with shiny new phones and some but not very much money. The culture today says mobile apps are cheap, and the market will get what it pays for.
It's a shame that making any kind of high-end and higher-priced mobile app is probably a non-starter now. Then again, perhaps that is for the best, and software that solves harder problems or provides deeper functionality or offers large volumes of good quality content is better presented via some other medium anyway.