Why shouldn't users feel cheated since even the same registrars could sell AM at different prices?
Why users then shouldn't feel cheated also from the platform itself that allows this behaviour to registrars?
The idea is that a registrar offers the same AM price to *all* customers who choose to register with her.
So not an individual price for every single customer, but one price offer from one registrar.
A different registrar can offer a different AM price but maybe their hosted wallet platform is also a bit different.
Of course there will be users who will try to be smart and register and upgrade with one registrar and then migrate their account to another hosted wallet service which they like better.
Theoretically we already have this problem to a large extent (I could sell you a LTM account for $25 and you could use it on OL instead of buying a new one for $100) and yet most users are not trying to game the registrar in this way. When people like a given hosted wallet platform, most of them will not attempt to find a better bargain. Some of them will hunt for the best price but most cannot be bothered to do that, especially when the amount involved is small, e.g. $5.
Regarding feeling cheated: do you feel cheated when you see very different prices for airline tickets even though the quality of service is very similar?
So not, I don't think people will feel like that. People will have a choice, and those who do not care so much about price will pay the price offered by their registrar and those who care about the price will hunt for the best price and they will feel they are smart.
Maybe it's a matter of a cultural difference. In Europe, I think price is not the most important factor, people look at several aspects and price is only one of them.
Why should you give free AM to an user that *do not want* to pay a fee to obtain AM's benefits?
If an user do not want AM, he is more than welcome to remain a normal_user and pay higher fee for every operation.
You don't need to give it away completely free, you can ask a very low price, e.g. $1, so that only users who want it will have it.
All options are possible. If a user does not want AM even for $1, she can stay on higher fees.
Giving away free AM or LTM means take away revenue from the network.
Or because eventually that user could have paid for it, or just because he would had end up paying higher fee as normal user.
I've tried my best to explain in the BSIP, why I believe this is not true. If those arguments are not enough, then sorry, I cannot express it more clearly.
As long as the competition among hosted wallet providers is non-existent or weak (as we have it now) no revenue can be lost, as no registrar will give anything for free, if it can be sold for money. Only strong competition can change that, but currently we are very far away from this situation.