It's all about economics of demand for what Twitter is offering: advertising. Elon's changes have massively harmed the value of an ad on Twitter. Moderation teams are massively cut, meaning advertisers have to worry about their products beside hate speech or worse. At the same time, Elon is explicitly un-banning people who were banned for hate speech, promising that no ads will show beside their future hate speech- i…
This is actually something that would be in line with Musk's previous communications. Twitter needs to become less dependent on advertising, much less so, so that its value as a public forum isn't held hostage by a few shy giants that would love to see cute kittens and meaningless platitudes next to their ads.
The idea that free services supported by extensive ads is the only way to go has been too long taken for revealed wisdom. The downsides are only now becoming apparent.
That said, the method chosen by Musk seems to be very chaotic and destructive, and it is totally unclear to me if Twitter can actually build a different business model without going belly-up first.