It’s time for Apple to put its foot down and tell non-free apps where they belong. It’s time they were sent to the Freemium Ghetto.

...

Outlining his proposal:

All apps now belong to one of three types: Free, Paid, and Demo (freemium). This simple reorganization would improve the app-shopping experience immensely. Thanks to the Freemium Ghetto, “Free” would become a safe word on the App Store. There’d be no more need to question if that game you just impulse-downloaded wanted to sucker you in with hidden costs. Apps would wear their intentions on their sleeves. The App Store would feel less like the casino it resembles today.

More honest labeling would give paid apps more of a chance to succeed. Given the choice between an app labeled “FREE” and one that costs a buck, it’s obvious what most consumers will pick. But if the decision is between a demo of one app and a full version of another, the choice is more even-handed.

I really like this idea. Go read his entire proposal to get a better idea of what he means.