I think gamers don't mind developers making money, including from appropriate advertising (billboards/loading screens etc) but they object to being treated like idiots.
Actually, I do mind. Sad thing is, lowering the price won't do it for me either. As much as publishers hate multiple SKUs, I won't be satisfied unless there is one SKU with ad-supported lower price and another full-priced SKU without ads. I don't care if the ad SKU is $25 and the non-ad SKU is $50, I'll still pay $50 (assuming the amount of content warrants it).
Still, with more and more electronic delivery happening. Two SKUs shoundn't be that hard.