I've always thought reasonbly priced software will sell a lot more copies and make more profits than people who charge exorbitant prices for their software (like the $200 I once stupidly payed for an MP3 encoder).
Then again, I never got donations on my free softwares, only asking $5... so I guess if people don't have to pay for something, no matter how cheap, they often wont
Then again my software is pretty basic stuff.