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Seems a little odd, surely with the cheaper RAM, far more powerful CPUs and inexpensive disks these days, they could spend a few $$$ and burn a couple of U , keeping their customers happy?

I don't know how many servers they would have needed in 2007 to provide the services they sold, but surely now they could consolidate all those users onto 1/4 the machines?

What is this negative press costing them?

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I think the real issue is that Joyent no longer provides any form of shared hosting and they don't want to. So they have no equivalent service to migrate the old lifetime customers to. They'd probably lose quite a bit of money if they migrate lifetime customers to their cloud.

I bet they're going to lose more in bad PR. People here usually do not forget fuck ups.

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