This seems like more management by manchild. I strongly suspect that Musk realized his promises of cutting down bots etc. were failing and that they either couldn't or wouldn't develop abuse detection, so he's decided to solve the problem by making it cost money, with the (perhaps desired) side effect of crippling academic/analytic research.
As an amateur network science researcher, I'm pretty steamed. I enjoy doing my own network analyses using tools like Gephi and have monitored probably a hundred breaking news or trending issues, as well as amassing a great collection of academic papers by smarter folk than me. I don't run any kind of app or service that sits on top of Twitter, but those who do run legitimate services are now being held hostage because of the unchecked abuse. Ant the failure to deal with botspam is lamentable. Twitter has refused for years to implement even the simplest things like hashing tweets and looking for collisions, or considering the count of edges to the hashtag graph, or even looking at tweet frequency. Many of their abuse problems will continue unabated; the sellers in the market for bogus twitter accounts are likely delighted because they now have a great excuse to raise prices, even though most of their 'product' is produced by hand with cheap labor in poor countries.