The issue at hand is that people put small websites on hosting providers designed for megacorporation wealth, like Netlify. I highly doubt the average blog needs more than a $10 VPS located in one single country without automatic fallback to another data centre. You can probably even go with a $5 VPS if you don't care about the first wave of HN front page bots not being able to reach your site.
I mean, yeah - but that shouldn't be the default and it shouldn't be something that you can't opt out of if it is, which is what sounds like happened with Netlify.
Same goes for most of the other pay-as-you-go providers that turn HN into billing support every now and then; very rarely do I see "we suddenly got a $20k bill" posts about services that these extreme availability products make sense for.
You wouldn't believe the amount of times I've said this and the response was "but it costs me nothing right now"...
Adding more regulation makes the system slower.
I'm fine with their pricing structure right now, since you have PLENTY of providers to choose from - people can easily vote with their wallets and there's no problem that needs solving.
However, the unexpected spikes are a problem, and providers seemingly don't provide any way to solve them because they make more money by not solving them. A regulation to require all providers of post-billed services to provide spending limits would make a lot of sense.
Of course, customers should also have the option to opt out of the limit or set a very high limit.
This should apply to any service that's billed by usage calculated afterwards, not just web hosting, and not just technology.