[donavanm]

FWIW I believe your reasoning is exactly what I saw/learned at AWS. The potential cost of losing/disappointing “real” customers greatly outweighed the notional cost of lost “scared” customers.

One interesting thought was trying to model some of this as an actual insurance method. Think of the cases where an adversary of the customer might inflate their costs through 3p usage/traffic. Providers dont want to incentivize those adversaries, deny the customer service, or charge them for unuseful service. Normally it devolved to credit/forgiveness, but then that moves the customers business model risks to the provider. What if this functioned similar to an insurance model; very cheap/baked in forgiveness for everyone (as today), then based on risk profile (porn/games/polical/gambling, or previous occurrence) the customer gets the option of buying forgiveness insurance or self funding their risk. The real sticking point is around perceived/potential conflict of interest and goodwill for the provider to say “pay us more for a thing that you cant directly control.”