The end state of all of this is fewer customers, but each customer is more passionate about what they're buying (and paying far more). Customers who were only marginally interested in the service are de-prioritized, and the business focuses on people who, for whatever reason, literally cannot go without the service and accept 10x prices (captive markets).
Why is it happening? Slowing macroeconomic growth means dividing the existing pie rather than going for maximizing volume in a world where there is more pie. You need to take someone else's lunch.
The most important thing here is buttering people up. I've never seen any more of an effective strategy than that. Just being kind and saying you like their ideas is an incredibly effective way to influence their next steps.
Why is it happening? Slowing macroeconomic growth means dividing the existing pie rather than going for maximizing volume in a world where there is more pie. You need to take someone else's lunch.