What the appstore needs is not higher prices, it needs fewer developers: if there are 20 apps doing X then each only makes enough money to get by, but if there were 2 apps doing X they both could invest into making new features. What we need is a serious recession with a healthy round of bakrupcies and mergers.
What we need is a better visibility system. Similar to HN, Digg, etc, where the best apps find a way to "float to the top", but never permanently (i.e. an extremely popular app won't sit on the Top 50 list forever). We also need better integration with this system from the web side of things - so app authors can generate exposure for their app not only on the App Store, but also by themselves through their own marketing.