Earlier quoted context omitted.
I guess the question then becomes, what problem does a multi-tenancy setup solve that an isolated database setup doesn't? Are they really not solving the same problem for a user perspective, or is it only from their own engineering perspective? And how do those decisions ultimately impact the product they can surface to users?
With multi-tenant vs multi-database decision one driver would be the level of legal/compliance/risk/cost/resource drivers around how segregated users really are. Multi-database is more expensive generally but is a more brain dead guaranteed way to ensure the users are properly segregated, resilient across cloud/database/etc software releases that may regress something in a multi-tenant setup. Multi-tenant you always…
That way when a customer leaves or they want a backup copy of their data, it's a rm .sqlite3 or .backup away.
Sometimes you can't do that for various (almost always non-technical) reason(s), but it's always my 1st choice.