I don't feel bad playing games that cost more as long as the operator has left the ability to earn free games. Most I think I've ever paid is $1.50 a game (can't remember where off the top of my head) but if I am paying that price I'm hoping for a well playing game that will reward my skill with a free play (when I actually exhibit skill...that's a whole different bag o worms )
Good example is the Round 1 near me. Games are pretty much $1 per play (card system.... basically once you buy a $30 card the pin price per game makes it down to $1 a play). Condition of the games overall is decent (other than level which drives me insane) but the replay levels are set so if you have a decent game you're going to end up with a free game.
I think as long as the operator continues to dangle that "just one more play" carrot out there I'll continue to drop money in location games.