This here is the reason. For you and I, this is not an issue but some people can be extra ordinarily sensitive to the prices. And even if most of the customer base is fine with it, some will be quite vocal on the internet and one media house needs to run with it and Backblaze will find itself in a PR nightmare.
Though I agree that they unnecessarily wore their heart on their sleeves.
A coupe months ago, Basecamp went down and their blog post was profusely apologetic (almost as dramatic as Backblaze's blog here). People pretty much told them to shut up in the comments and carry on with their work.
That's the thing, this price increase flies in the business world. Not necessarily in the consumer world.