He might well have carried on selling those cheap products but I know a lot of people who will never be buying anything recommended by mailing list him again! Everyone who does internet marketing knows the power of having a good mailing list. For some people, a mailing list can mean instant money as if you have a good customer base you can often be guaranteed of making a sale every time you send out emails.
However, there are some people that make big mistakes with their list which can cost them in the long run. I used to subscribe to a well known guru who I very much respected and so did many people online. A lot of people on forums spoke very mailing list highly of him and everyone was recommending him to everyone else. I bought a few of his personal products and they were fantastic.
However, it seemed that after a while either the success or the money went to his head. It was obvious to anyone that he had a massive mailing list with good potential so what happened next was people started renting his list. Now this guru had a great reputation so what he would do was send out a mailshot selling other peoples products that were "highly recommended".