Interesting story, thanks for sharing! My experiences are similar (though an order of magnitude less interesting, in dollar amounts

).
I started out free with my Mazer game, and found out that when making it paid (after I saw it getting downloaded way more than I anticipated), the number of downloads decreased by three orders of magnitude. Full story in the link in my signature.
New information is that there is a rather large seasonal effect in ad-supported revenue. Apparently, since the holidays are over, fill rates are dropping rather dramatically (number of downloads seem to stay rather stable).