I'm a sys admin/devops engineer, and yes, storage is far more expensive then people realize.
This is the very definition of enshittification.
EDIT: To those downvoting:
Do you actually know what the definition of enshittification is? Apparently not.
Enshittification (alternately, crapification and platform decay) is a pattern in which online products and services decline in quality. Initially, vendors create high-quality offerings to attract users, then they degrade those offerings to better serve business customers, and finally degrade their services to users and business customers to maximize profits for shareholders.
It doesn't matter that the cost of storage is a real thing. They gave things of value away for free to grow their user base and to try and capture network effects. Now that they think they have that they are taking away ( or decreasing ) the free stuff of value they gave away.
The fact that storage has value is literally an important part of enshitification.
It wouldn't be enshitification if they gave away free stuff that wasn't valuable.