I want to like Backblaze I love their harddrive report but this is not helping.
Since the software version no longer works, they wouldn't be able to do a restore anyway. Keeping their old data on the live servers longer could be a liability.
(just a guess, but i imagine it's something along these lines)
The Backblaze software doesn't handle restores, it just backs things up. To restore, you download zip files of selected folders from the website.
I agree that a better solution would have been to remove the backup to a secondary system that the client could later access if needed.
Deleting in 7 days is unreasonable.
It wouldn't have been unreasonable to move away from SHA1 in that time period, for example. They may have needed the original files to get a SHA256 hash.
I think it must have been blocking some organizational objective. I can't think of any reason why they would bother to send that email, much less to go all the way to the CTO to send that email.