Earlier quoted context omitted.
Having to make some design decisions doesn't mean it's impossible to design.
Budget alerts were the design decision made. You can set up your own infra to listen to budget alerts and cap your own costs. This is a feature that only makes sense to put in the customer's control because a general solution would work for no one. It's a great solution to the problem imo.
Anyway, they should be able to protect people from an unexpected $1k charge. Once you deal with alerts triggering automatic infrastructure changes, $1k is likely a value you won't even notice.