Earlier quoted context omitted.
So the issue is the same as Anthropic. They do charge for it though their API. The users, however, want to use the discounted "unlimited" flat rate through the first-party app instead, then get mad when they are told they have to use the same API every other third-party app does.
No, the problem is that the discounted rate exists in the first place. Essentially these are unfair business practices, product cross subsidization to ensure market dominance. See also: Microsoft and a whole bunch of other companies. And once they've got their monopoly position there is inevitably the rug-pull. I wonder if some CPO somewhere actually had the guts to put a 'rug pull' item on the product roadmap.
Of course, Google is still in the wrong here for instantly nuking the account instead of just billing them for API usage instead (largely because an autoban or whatever easier, I'm sure).