I personally strongly disagree with such tactics and I think this might lead to the company collapse in far future. By cutting out small users, you are wiping out testers, that pay to use your product and provide a valuable feedback. Instead of cutting out the smallest customers, they should optimize their offering, so that small users are being served completely automatically, hands-off, with only email support provided.
Your second point is spot on. McDonalds is still in business, after all.