I seem to be a little late to this party...
I've voted no.
When I came across Toribash, like many of you, it grabbed me instantly. I was presented with a game that was original and fascinating, clearly a lot of effort (and [probably] love) had gone into it's production. Unlike many of you (possibly) I had only played 'SP Demo' for a day when I decided that I wanted to buy a key for the game. This decision was led initially by wanting to have all the features (actually just being able to save replays was enough) but I also wanted to reward the person/people that had made the game. It was the value of the product that sold the game to me not the price.
When I also discovered the online community (that's you that is!) I realised even more what a special game I had bought. My first online game was on the registered servers and I was welcomed and made to feel at home (decapped) it was only later that I realised how lucky I was to have regged.
My first visit to the demo servers some weeks later introduced me to a long queue for a game :( ,although I enjoy watching fights I prefer having them. I was surprised at how often the demo rooms were full whenever I went online and so like other pro's I occaisionally played on the demo servers. It was always such a relief to get back to the regged servers and have good quality games and mostly good quality chat, and! shorter queues. No offence to all you unreggy's I do love fighting you all, but hates the waiting.
The busyness of the demo servers suggests that many people like the game but are Unable or Unwilling to pay for it (or currently saving/working towards regging). Making the game free would certainly bring more people to the game BUT if they were unable/unwilling to pay for the product in the first place will they be spending money in-game?
The developers need to ensure income, If it's a question of making revenue through smaller value products such as the toriboosters or toricredit purchases then cool go for it... I don't think that you should make Toribash itself free though, as a product with so much value deserves to have a price attatched to it. Oh and it's not like the price is unnattainable.
Like Sparrow said, Promotion is the way forward, advertising can be expensive but if its done right will sell the product on its value. All these comps are a great idea as we are gaining registered users, who value the product and so add to the community.
I've written this long Toribash love story because I suppose I fear a flood of people across the servers who haven't had to scrimp and save or show some sort of committment to Hampa and his Team and who will use the game in its fulness without the need to reward the efforts put in.
Hampa, you David Braben and Ian Bell are the only people to have really made me love, and pay for a game. I hope you continue to make money from this game whichever way you can, but please keep the value in it!