The cost of the MonoTouch library is entirely beside the point. The reason you shouldn't use Mono for your iPhone apps, is that it is a crutch. If you can't be bothered to learn the native tools, then I have no reason to believe that your product is worth downloading.
Edit: 4/14/2010 Applications written with MonoTouch aren't eligible for the iTunes Store. This is as it should be. Apple saw plenty of shallow ports on the Mac, using cross-platform toolkits like Qt, or Adobe's own partial re-implementation of the System 7 toolbox, and the long and short of it is they're just not good enough.
