Obviously a low price with thousands downloads is way better than a higher price with only hundreds of purchases.
$2.99 * 5000 > $10 * 500
Time will tell but I'm pretty sure this is a good strategy.
From my personal e-book experience going from $.99 to $9.99 cut down sales by about 90% (so it was the same amount of revenue, but higher processing fees), and going to $49.99 only decreased sales by a further 33%-so $49.99 was massively more profitable! This was over thousands of e-books by the way, not any particular one.
<Insert standard "this may not apply to everyone but is an interesting datapoint" caveat here>
