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> A simple hard cap is only useful to customers we dont care about because they dont pay us enough. An advanced cap with all the kinds of failover options and thresholds that a medium sized business might want is complex and the people who actually pay the big money (those we care about) don't actually want caps anyway.

That's an honest answer, I'd be happy if they formulated it this way. Fortunately, there are other cloud providers with billing cap implemented properly, and you don't hear horror stories about them (problems with spending too much on AWS are very common though).