Some dirt-cheap VPS maybe too unreliable to run anything serious, that's why they sell that for dirt cheap. And their consumers generally won't complain about sudden server reboots, because that's what expected for the price.
If they increase their prices, then many of their customers maybe better off just use Linode or DigitalOcean etc instead, as these vendors provides better guaranty on stability.
Not sure what the lift might be, but in theory everything should be relatively similar in future state, just more expensive. This is basically a form of inflation.
People renting VPS to do something, running a service, a website, email etc. But there are other ways to achieve the same without the need of a VPS.
If VPS cost increase to a certain level, some people will just host the service on their own Raspberry Pis through Cloudflare Tunnel, or just simply shut the service down.