but honestly as an indie developer If I had to pick between a million people playing my game for free, or making a nice little amount off of few people, Id pick option A, if your a hobbyist money shouldn't be the first thing on your mind, a hobby is something you do for fun. Iam actually worst off then selling my product for $1 as I started taking a ~250$ hit per month just to host my servers for my current project. It'd be great to turn a profit but if I don't I honestly wont care, now if I see my monthly traffic is like 10 users THEN! we have a problem lol.

I agree - personally I just release for free under open source, my hobby is something for fun, now for profit. (With open source, I can take advantage of various free hosting services like Sourceforge, to avoid hosting costs.)

As for mobile development, I can't help feeling that when it comes to the large number who're struggling to make money from their apps - the only people who are making money are the app store owners. A 30% cut of every single one of these games, for little marginal effort! With free apps, they don't get any 30% from me (Well okay, Nokia do have my 1 euro fee - thankfully they don't overcharge like Apple:))

Making a game to sell for $1.00 - $5.00 appears to be a very sad reality in today's game market.

It's not about price per unit, it's about the huge casual/mobile/downloadable market that exists now.
I am not 100% sure but I think most platforms give you a 70/30 split deal, that's huge! Compare that to the classic retail market which will never get you that much out of the end-price except, maybe, your company is called valve or id.