It's up to the customer to choose. Why would a business give shit away for free after the client made their choice not to buy it?
And as far as I can tell they didn't "physically delete files", they just pulled the plug on a VPS as per the clients requests. You think being able to terminate an EC2 instance is amateurish from Amazon?
Discontinuing backups and deleting data on account cancellation seem like reasonable acts to me. It is a sorry case but it sounds like misunderstanding by the customer, though the process seems a touch messy and could be improved.
Hopefully that will be VentraIP's take away from this, though they probably won't acknowledge this if legal action is pending.