iPhone apps on iPad are obviously that. People may complain about being entitled to a single version that works versus buying two but even the Universal iOS apps have an entirely separate iPad UI/version usually. This is just being lazy just to say that your app "works on tablets."

Ah, so the baseline is in fact better than iPhone apps on iOS, but a further separate purchase that provides a further increase in tablet-ness isn't always available (yet), I guess that's more in line with what I would have expected.