If they had just listened to the feedback, realized their mistake, even if it took a while, and then backpedaled to the current compromise, they probably wouldn't have hurt their business much. It was the disdain they showed for small developers, basically saying they weren't going to address issues like reinstallation and other things that would make a big difference to smaller projects. And then quietly altering their TOS, to make the small developers that made the platform able to exist, have to start paying even if the contract at the time protected them from the fees if they didn't upgrade.

This kind of disregard for the people who made your company what it is today, just to make some short term profit is exactly why Reddit, Twitter, and so many other tech companies are falling apart right now. It's just happening to such extremes that it's not just let's price gouge our customers and patrons, but let's actively commit fraud to squeeze out every possible dime from all but our biggest customers and throw them away. Fortunately, places like Lemmy and Mastodon are here to catch them. Hope they can make it.