The valid point, if true, is that an action of one individual caused a major disruption for a lot of other people that are connected to him only via google algorithms or some other vague means.
Banning non-violating business accounts from the business that breaks ToS is kind-of OK (but should be followed by a human interaction to check); banning personal accounts for folks because of their business ties is not. My 2c.
I thought I had it since the beginning and my Gmail account has emails to my custom domain going back to October of 2005 however Google says it launched the service in 2006.
The original Free Accounts (Back before it was gsuite) was 100 Users, then ti was reduced to 10, then phased out completely.
If you had one of those Apps for Domains accounts back when they were 100 Free Users you still have 100 Free Users but you are limited to like 15GB per user or something like that