Although I don't personally use home inspectors on my purchases, I deal with a lot of them when selling and there is a wide variety.
As an investor or a buyer, I would want an inspector with actual construction experience. Some are former building code inspectors, which is even better. Either way, look for one who will really look into the details and look for any potential future or hidden problems (i.e. the stuff I look for when evaluating houses). To me, a bad inspection report says "water heater was working at time of inspection with no noted issues" while a good one says "although water heater was fully functional at time of inspection, the serial number indicates it was manufactured in 1997 and therefore may be near the end of its useful life". He should walk the roof to check for soft spots, not just view from ground, etc.
To answer the title question, I would gladly pay $400 for the detailed inspection rather than $200 for someone to test the dishwasher and flush the toilets.
Source: http://www.biggerpockets.com/forums/311/topics/70980-how-much-do-you-pay-for-home-inspections
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