This does feel like a real problem. The thing that concerns me (and likely other devs here) is that it adds an additional remote API dependency for a very core part of a system when a lot of people are trying to keep those dependencies to an absolute minimum. When your service goes down (not if), everyone who’s dependent on you will not be able to register new users, etc.
Is there any way you can offer this as a library instead? You deserve to get paid of course - maybe provide the library and initial data and charge for updates / premium checks, something like that.