It's just a rumor at this point, but yes, apparently it's floating around out there that Apple may be considering a $19.99 price point for "premium" games in the App Store. That would be a direct response not only to bigger developers who say a 99 cents to $9.99 price point is too low for them to justify the cost of production, but also to competing game systems like the DS and the PSP -- if the same games were available for the same price on both systems, Apple could use the iPhone's extra features to justify even more purchases.
It's an interesting idea, and actually, though obviously it would cost consumers more, the bottom line in the App Store has always been worth, not price -- there are currently premium games being sold on services like Xbox Live and the Wii's Virtual Console for $20, and gamers are willing to pay, as long as they get the bang for the buck that they expect.
We'll have to see what approach Apple takes here. On the music side of things, they were obviously very hesitant to move up the price points (though even there, they made concessions and did so). As popular as the App Store is, a higher price point, if used correctly, could really open up the kinds of software we're seeing there.