You can't choose to stay small unless you're someone like clubhouse which still has a long waitlist for sign-ups, and even then they're trying to build their infrastructure wide enough to accompany everyone. Not offering service to all/99.9% of potential customers is effectively lost value and goes against shareholders' expectations.
That's like saying a restaurant can't choose not to serve a billion people even though it only has enough capacity to seat and make food for 20: if you can't provide legitimate service for everyone, you need to not allow more people. The core problem here is that users keep signing up for Google services without being informed correctly ahead of time why that's idiotic, and the only fix for this is going to be regulatory: either Google needs to change how they handle banning people (there should be some law that if they accepted responsibility to store someone else's data that they have some minimum retention time for it letting you access it or something), come up with a working appeals process (and ensure that they have enough employees to handle the expected appeal load before either signing up new accounts or banning old ones), or they need to be forced to have a giant sticker on the box with a skull and crossbones on it which says that the moral equivalent of the surgeon general needs you to be informed of the serious risks that are associated with using this ridiculous service offering.
