From the perspective of the advertiser that would be, at least, on the border of being a con job.

But the fine print on http://www.ipadgameforcats.com/ says that one level/theme is free and another is $1.99 as an in-app purchase.

Right. And sorry, I need to clarify. That number is the sum of our two cat apps. Our second app is a painting game (for cats). The code is essentially the same, just with a bit of GL painting + facebook sharing. (Yup, people post their cat's paintings on facebook.)