Why would we? we make a (small) profit on these cheaper tiers. We are a sustainable and profitable company. Also the free tier wasnt cancelled very recently it was 1.5 years ago so you are reaching a bit here.
Your $5 plan may be gross margin positive but incentives are to push users into higher margin plans and from this pov this new plan looks much like your previous free plan which was rug pulled. Offering a free service to buy users then imposing migration costs on these users when you rug pull damaged your reputation. Next time perhaps grandfather existing users instead. If you want this new plan to be taken seriously update your terms to promise you will not rug pull again.
He's responding in good faith to people expressing doubt that they will maintain this pricing tier, and is responding to rebuttals. Whether you agree with his point of view is different.
Case in point. Potential customers will see this dismissal as the equivalent of how long they expect this pricing to remain. You’re free to increase the price in a year and when customers are irked, “why isn’t it $5 anymore?” They’ll be met with “that’s not recent.” “That was so long ago”
If you want to rebuild reputation with hobby tier, you’ll probably want to put in a 3 year pricing guarantee, not 1 month like the notice last time.