Do new users have to pay all tiers of upgrade or do they get a reduced cost?
If it's the former, then the app's price keeps on rising and comes down to IAPs being better to unlock extra features you actually need without the whole package.
If it's the latter, then old users feel betrayed for having to pay the full upgrade price even though they bought the app earlier than new users.
There are pros and cons for both sides, unless I didn't think of one solution that could work perfectly.