There are 2 versions of 1 password regular and hdpro the pro vesion has more features than regular if you purchase either versions there is no charge to down load on to either iPad or iPhone and or iPod touch I own the pro version installed on all 3 devices I suggest actually going their web site and look at the 2 versions available for Apple and android as they may differ. I can remember there was a free version when the iPhone first came out so who knows if it is the same. I can understand your frustration though.
One thing I love is the support for the product so I do not care if I pay a few dollars for the program. I may in fact email my contact at 1 password and ask why the difference in cost.