'moving towards a yearly...'? Apple's been releasing Mac OS X upgrades in a yearly fashion since 10.1. - And it's been quite clear that it would move on that way. Also _before_ Mac OS X, the big updates came along in a yearly fashion, with a .1 or .6 update between them. Also: You're _not_ in fact paying full price. 129$ is the upgrade price, since there are no 'full' versions. You've already _got_ a Mac OS license because you've bought a Mac, which doesn't come without one.
Ah, this is really upsetting me right now. After we've finally put the whiners down a bit about the 129$ price tag (remember that ever-recurring question about how much 10.2 and 10.3 would cost and that it was almost _unpossible_ that it would cost 129$?), now there's the same argument because of a simple browser update? :/ Hmm... When Jaguar came out, neither Safari nor iChat AV were around. You did _not_ buy a license for Safari or iChat AV. And Apple never promised to deliver updates to newer software for older operating system versions. If you want to use Safari, use the latest version around for your OS version. If that's not good enough, use OmniWeb, Camino or Firefox. They're all really good, you know...
And come September, you'll be thinking about buying 10.4, which will probably be one BIG upgrade for 10.2 users (and 'just another one' with 150 new features for 10.3 users).
If you're still using Jaguar, btw.: There are many, many things you're missing. Safari 1.2 is probably the LEAST important thing I could think of.