Re: "NOTHING beats FREE"
Some people will, always. Those people are not your customers and there is nothing to be gained in throwing good money after bad in an effort to lock out this tiny percentage, especially using methods that cost you money and alienate a large proportion of your paying customers. That's called cutting off one's nose to spite one's face. Incidentally, I bought World of Goo, was a fun game.
If you want examples why not look at one of the biggest and best known ones? CD Projekt, makers of The Witcher games and the brains behind GoG.com. They are raking it in hand-over-fist because (a) they release good stuff, (b) they won't use DRM and they make sure people know that, and (c) they don't get all bent out of shape over the small handful that won't pay for their games. They even released patches to remove Steam's DRM from their games, just out of principle. THIS is how you build a loyal fan base in the modern age.
Admittedly, it is a bit more difficult for first-time releases such as the World of Goo guy. If you are completely unknown, you won't have much of a fan base to start with. That needs to be built up over multiple releases.