The thing with mobile games is that you make 90% of your money on 0.001% of your players - the big spenders. It's "better" to have a free game where a wealthy player can spend $10k on gems or whatever, than a one-time paid game. It's a sad state of the market, but that's how the big companies make money.
Yes, but if the original non-monetized version is result number 1 or 2 when searching for "angry birds" in the store, then the big spenders might never come across the version you want them to come across. You can't "fix" that by just increasing the price of the original game.
