Keeping customers satisfied leads to a good name. A good name leads to more customers, and both that and satisfied customers leads to long term profit. It appears some companies focus too much on short term profit.
In this case, users are both product and paying customer. Ads is one thing, but GDPR request showed they log every action related to the account.
People praise Spotify for how good their recommendations are, where do you think they get data for things like that?