Yes, exactly. As moneymaking schemes go, it was certainly one of the more successful ones (Seriously, a few weeks ago, they had a deal where you could pay them to add layers to the cube!). They sold more efficient tools for anything ranging from 59 cents to 50000 USD (yes, really).
Lorric: Molyneux is, in game development circles, generally thought of as a pretentious prick, whose latest efforts generally fell far short of the promises he made during the production phase. Just compare what he promised to deliver for the first Fable with what he actually delivered.