It's like, imagine a magic wand that, if waved, would make life a little better for 99% of society, but much worse for 1%. Would it be moral to wave that wand?
I think that alone kinda nullifies the threat of an algorithm. The entire reason why they're such a massive problem is because Google et al. refuse to operate proper support hotlines to help people and even if they do have a support line (Facebook infamously doesn't have one and wants you to go through the courts to contact them), the support staff aren't actually equipped to help people beyond regurgitating canned support page links. You can't solve a malfunctioning algorithm with another algorithm or by forcing a human to behave like an algorithm.
It's not a big secret that the best way to get yourself in front of actual support if GAFAM screws you over is to complain about it on HN because this is where SREs lurk that can actually punt your requests through to people that can look into it.
Hetzner at least gave a direct answer to explain the reason.
Just by having a third option, most of the downsides of doing the evaluation incorrectly could be mitigated. Of course, that's generally much more expensive (and often uneconomical) than saying no, so it's usually not done.
I've been on the 1% side of things quite a few times due to having new credit and (presumably) various data brokers not knowing every detail about me yet, and the experience really, really sucks.
I’d rather have $10 permanently lost for a month of VPS than being banned after 5 days setting it up because I’m traveling and my IP is “suspicious”. Which has happened to me.