That seems like revisionist history. Amazon started out with Prime Video bundled with Prime as a whole, and didn't raise the price. After 5-6 years they made it an add-on, then they added an ad-supported tier.

But if anything, the racket is bundling free shipping with ad-free video and everything else. Raising prices periodically to keep up with inflation is not a racket. And whether you would prefer to get downgraded to the advertising plan or automatically pay more is a personal choice, and automatically downgrading you rather than renewing you at a higher price is in some ways a more sensible default. (Though I'd prefer to be upgraded to the higher price generally and be notified so I have the option to downgrade or cancel, though downgrade really isn't an option I would consider.)

The primary issue is that many people prepaid for a year of Prime, which included ad-free streaming, and that ad-free service was changed mid-contract. I’d have no problem if the included streaming tier or overall price was changed at renewal.