I guess the question then becomes, what problem does a multi-tenancy setup solve that an isolated database setup doesn't? Are they really not solving the same problem for a user perspective, or is it only from their own engineering perspective? And how do those decisions ultimately impact the product they can surface to users?

In a system with organizations, projects and advanced user access permissions having separate databases doesn’t full solve the problem. You still need access control inside each tenanted database. It also makes cross-cutting queries impossible which means users can’t query across all their orgs for example.

The DSL approach has other advantages too: like rewriting queries to not expose underlying tables, doing automatic performance optimizations…