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Can someone explain to me why they would do this ? I cannot think of a reason why they would stop providing this service.

They've making an 80/20 decision. Make the service better for the 20% of users that produce 80% of your revenue and price everyone else out. They don't want to be the startup economies dumb email tube. They want to be a high margin service for companies with more marketers or designers than programers.

Indeed. But instead of gracefully transitioning like a sensible company would - i.e. slowly phasing the two together, teeing up alternatives for customers, giving plenty of advanced notice and warning etc, they've gone full nuclear.

Part of me hopes they go bankrupt.

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