It's a pretty bold move -- Ngmoco is seriously investing in this model (even to the extent where they'll cancel planned games unless they can squeeze them into the model), and now Freeverse will have to follow suit. There's no word on what will happen to Freeverse's significant Mac game library as well -- will that part of the company be split off? Will Ngmoco shut it all down and choose to focus on iPhone apps?
Unfortunately, the only available information is the post on TechCrunch. We've put out calls to both developers and will get back to you when we know more.
Update: Touch Arcade has interviewed Young. He doesn't mention Freeverse's Mac titles, but he does confirm that "freemium" is the way they're going to steer all of Freeverse's titles in the future.