That said, I do wonder who the pricing is targeted at.
Our database primary is around the same price as the highest spec DO are offering, but for that we get 3x memory, 6x CPU, and 2x the disk.
For some things there are definitely huge benefits to using a hosted product, Jenkins for example costs us a fortune in engineering time. Postgres though is fairly straightforward for a simple setup, requires little ongoing maintenance, and scales well to bigger boxes without much work.
I can see spending up to $100 a month of this perhaps, but for the ~day it might take to set up Postgres on $50 of hardware with twice the performance, I can’t see going much further beyond that. Equally, higher up the scale, the top end is not that high performance for ~$2500 a month. The point in time backups is fantastic, but I’m not sure how necessary they are for most customers, over a standard Postgres hot replica setup.