I get the decision but I think it misses part of the problem: how do you convince people like your mum and dad to start paying for backups and how do you convince them to pay extra for privacy?

I suspect the way it usually happens is that somebody your parents trust (like you) tells them to sign up for a privacy-preserving backup service.

But who's going to tell them to do that? Do you have the money to pay for advertising?

Normally, I'd suspect it's the tech-savvy younger folks who'd tell them to buy something like this but with your pricing and lack of self-hosted options, I suspect you've alienated a large portion of the tech-savvy audience you need to advocate for your product.