I could equally well believe that they got rid of it because it affected the quarterly earnings report and there was maybe one customer who was "incandescent with rage" that the caps they put in place worked exactly as advertised.
Well... most cloudy limits only affect current operations. If you add a limit to the number of VMs running you might experience service degradation for a while, until you learn to cope with new peak demand by increasing your quota or being more efficient.
That raging customer might well assume that because almost all limits are like that, all are, including the new S3 limit, but the S3 limit causes service degradation forever, not during peak load. The writes that failed for a while map to reads that'll fail forever, because that data isn't there.
We can come up with possibilities that sound more or plausible. I'd love to hear something more factual.