Lots of people use only the basic features (git, issues, merge requests, maybe the CI with Gitlab runners or self hosted runners)
The premium package may be too much, for people who are not interested in the 100s of premium/enterprise features they Gitlab is building or where paying per seat quickly becomes uneconomical.
Shameless plug: I'm building a managed Gitlab hosting at https://hosted-git.com/. I'm still happy with the Gitlab product but I think there's a gap in their offering for SMEs/small teams who may otherwise jump ship and migrate to a competing offer given the very competitive landscape!
Hopefully paying per server will be a good alternative and give customers more control.