There's a odd mindset of people, that free things aren't usually good.
When they have to pay for something then they appreciate it more.
Like when I use to buy all my Super Nintendo cartridges, I played every single one from beginning to end,
but when I got them all on a SNES emulator on my computer, I only spent a few minutes if that on each one,
thinking each of them was rubbish, not giving them a chance.
The flips side, giving stuff away for free is a great way to help get your name out there.
I think lite versions are the way to go, or inapp purchases, as this means people get to try your game,
and if they truly like it, they can get the full version, and feel superior because they paid for it.