All this costs money for little return of invest. As long as the collateral damage is below a threshold that causes reputational damage, there is no business incentive to solve this.

Yes, I agree, the companies don't actually care about consumers, only what's cheaper for them. But this is a choice companies do, not because laws somehow require them to block the entire account vs individual features. I was just adding that because the original comment made it seem like the companies are somehow forced to act like they do because of laws, but it isn't, it's an intentional cost-measured choice they make by themselves.