Smash Hit isn't really that bad - basically the free version is a trial, and you pay one price for the full version.
I think this Google move is more targeted at the sort of games that don't fall into the trial/paid category, rather the sort that constantly try to bill you for microtransations.
Yeah, I believe the free trial and full version were 2 different apps before. Now, you don't have to download a new app to upgrade and can keep game data from the trial. This seems like a better solution, though the price may be misleading due to how "free" games are displayed in the store. The new play store change should solve this.
I think this Google move is more targeted at the sort of games that don't fall into the trial/paid category, rather the sort that constantly try to bill you for microtransations.