If your 1.0 version is in the store, what's the problem? A few members of your audience will download the 1.0, then a day or so later they'll get an update.
Is there anything stopping you from showing the 1.1 version, and telling people that it's a free upgrade if they buy the 1.0 version?
Is there anything stopping you from showing the 1.1 version, and telling people that it's a free upgrade if they buy the 1.0 version?