The new price then is $4/month. From $3/month. (So still 33% increase, similar to family plan in OP].
I found it very cheap before, which is part of what encouraged me to get it in the first place, vs trying to do something free. Would I have signed up for it originally at this price? I don't know. But it's not enough to make me switch to a competitor now, or try to find a way to do password management for free -- so they predicted succesfully for me that they'd keep me as a customer. Even though annoyed.
Definitely can't go back to having no password management. (I also use it for TOTP and passkey).
If I was on all Apple/iOS, I'd probably just use iCloud. But I need multi-OS-vendor support.
What one actually needs these days is not something one can get a reasonable UX for free for. (unless you only need apple OS's maybe? Or only chrome?). There's really no alternative. I think they realized that, and that they were leaving money on the table. I got 1Passowrd originaly when I needed TOTP, and wanted something that was multi-device and secure, and certainly didn't want to host it myself. I don't know what else I'd use.