Let's say the answer is yes, you just delete all the data as I can no longer afford it... delete operations are billable, so do you charge the user for those deletes or not?
Let's say the answer is yes, and you bill the deletes. What happens if too many deletes are required and suddenly you're at 2x the bill cap? Now you can't document the bill cap as being able to go over by up to 1.5x. This may be unlikely, but customers use cloud services in weird and wonderful ways.
This is just one resource type, there are many different resource types on a typical cloud provider, each with multiple axes of billing, each of which has hard decisions to not just be made, but documented and communicated to customers in such a way that they understand the impact. Oh and also it's the "I just put my credit card in and go" crowd who you have to explain it to, who aren't engaging in sales conversations, not those on business contracts who might actually listen or read the documentation.
It's not at all obvious to me that this is preferable to just having someone look at these incidents on a case by case basis and seeing who should be refunded.