I never really believed in paying for virtual stuff, but then I never believed in paying for monthly access to an MMORPG either, and I started playing WoW 4 weeks ago (but most likely won't renew after the 3 months is over unless my game experience changes dramatically). It's been around for a long time though. I used to play MUDs, and there were a few of those where you'd had to pay for certain powerful equipment. Needless to say, I stayed away from those.
It's a balance between whatever the idiot wants to pay for it (witness the Diablo 2 market for uniques and set items), and gameplay balance. Of course, if you can enjoy a game without being the strongest or fastest-leveling, then that's perfect. My beef is those games that forces you to spend additional money to play even the basics. Of course, PC owners have a little bit of an easier time with this, since, for example, all the Oblivion plug-ins can be ehmm tested through the proper channels. But, take the horse armor for example, other than making the horse look prettier (and there are plenty of free mods out there that make everything look prettier), so what if the horse is better-armored? I'd rather use the console to resurrect than pay money for something as simple as that. The more recent mods in Oblivion added a lot of content, but so do the user-created mods, which are free, and often more elaborate than the commercial mods.
Duncan makes a great point about NWN, that's like the RPG for Communists. Or, to avoid politics, an open-source RPG. It's out there, with the tools for everyone to create their own content, and the quality of these mods is outstanding I can't wait to see what NWN2 will do.
And Duncan, NWN for the console will be like DOA for the PC. Well, OK, not really...