I just got off the phone with Apple's customer service and was told that Apple will send a $20 electronic coupon for the apple store to any existing iPod Touch owner who buys the new applications. Just call customer service and tell them you're upset for having to pay and the coupon will show up in your mail within 24 hours. Its the same as they did for iPhone owners when the price dropped. I was told that you CAN use the coupon in retail stores. Hope that helps.