Can Google Fix the Android Market?
So, Google is not satisfied with the way paid apps are performing (not well) in the Android Market.
Unhappy With Slow Growth Of Android App Purchases, Google Talks 2011 Roadmap (Forbes)
Android In-App Payments Coming Soon – Were Delayed Because Developers Were Busy (TechCrunch)
One of the ways is going to try to help developers make money is to provide in-app purchases. This makes sense and could help but is not the main problem. Carrier billing is an interesting approach Google is trying (with AT&T at the moment) to make app purchases simpler.
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