Again I don't think you understand the amount of resources that goes into anti-fraud teams in the hosting world. I used to work at a big hosting company and we had a team of 50+ people working around the clock to stop fraud ontop of tens of thousands of hours in engineering time to automate as much as possible. It STILL wasn't enough. I can only imagine how much worse it is when you have a free product offering.
They could've converted the entire free tier offering to a $2-5/month thing, which would still be very attractive for legitimate users. Fraud is a big problem, but it didn't mandate this specific solution.
