This is good news for existing paying Heroku users. This is good news for Fly, Render, etc. This is bad news for Heroku in the long term. Free tiers are a gateway to users.
I don't think it is, as a paying customer the free instances are such a useful part of the offering enabling us to have a free staging environment and test branches. As a small business, the free instances offset the excessive cost of Heroku.