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Purchased apps still owned after update?

No you will not have to purchase them again, they are purchased/stored through your gmail account (the one you used to set up the phone).

They'll be in the market available for you to install again.

to elaborate for anyone else confused about this:

As long as you use the same gmail account to set up the phone after a reset (from loading an update, or a factory reset, or any time your account info gets reset), your paid apps bought before the wipe WILL be available for free download through the market.

Free apps previously downloaded will still be free, but there won't be a record that you had previously downloaded them (so write them down if you want to keep them after a wipe/reset)
 
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i had to puchase every app again... did not save mine after update

If you used the same email address as you INITIALLY used to setup the phone, they will be there.

As Kelmar said, using the original email address you used to set up the phone (or the email address you used when you purchased those apps, as it's possible you changed the account on the phone at some time), the paid apps will be saved. They'll have to be re-downloaded, but you shouldn't have to pay for them.

And again, other than the first time you open the market, the free apps downloaded before the wipe won't be saved in your download history
 
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