Why is it unreasonable?
It’s a subsidized price; conditional to using their tooling. Don’t want to use their tooling? Pay the API rates. The API is sitting right there, ready to use for a broader range of purposes.
It’s only unreasonable if you think the customer has a right to have their cake and eat it too.
Tradition warrants a negotiation phase when one party wishes to change the terms of an agreement, or becomes cognizant that the counterparty may wish to do the same.
The tech industry has gorged on non-participation in this facet of contract law, instead resorting to all or nothing clickwrap, which is, barring existential or egregious circumstances, unwarranted, and in my opinion, is fundamentally unreasonable, and should be an invalid exercise of contract law. Especially given the size of one of the party's in comparison to the other.
I think the permaban without notification on first violation (that most violators likely weren't even aware was a violation) is unreasonable. This should almost certainly be illegal if it is not already under the DSA or similar, particularly for a monopolist of Google's scale.
A flat rate is always a mixture of low usage people subsidizing high usage people. It's disgusting that these companies want to have the advantages of subs, but then straight up ban any high usage people. Basically, there is no flatrate.
We can debate on the policy.
The punishment, of being kicked out of your Google account for a zero-tolerance first offense, is completely unreasonable, is incredibly extreme Lawful Evil alignment.
The damage to individuals that Google is willing to just hand out here, to customers they have had for decades, who have their lives built around Google products, is absurd. This is criminally bad behavior and whatever the terms of service say, this is an affront to the dignity of man. This is evil. And beyond any conceivable reason.
Edit: perhaps not the entire account is locked? https://news.ycombinator.com/item?id=47116330
> It’s a subsidized price; conditional to using their tooling.
Yes, because you are giving them your data. So you're not actually paying for usage. What they should do instead is be upfront about why this is subsidized and/or not subsidize it in the first place.