10.1 was for real. It's been out almost a year. It was a free update.

Everyone who owns a Mac already has a copy of Mac OS, so everyone who isn't buying a new computer is upgrading, so an "upgrade break" doesn't make a lot of sense. Apple is doing what they always seem to have done: provided the upgrade at a low cost (~$20) to anyone who bought a computer after the announcement, but otherwise, it costs what it costs.

If 10.2 isn't worth $129, don't buy it. Wait for 10.3. Buy a PC. Whatever. No one is putting a gun to your head. Your computer will continue working with 10.1.

This is slightly off topic, but has it occurred to anyone that Apple is essentially acting as the unpaid system administrator for all Mac users? Recently, they've been doing a pretty good job of keeping their eye on the ball with security issues. Is this worth any money? I think so.