The problem for users (not google) is that its an arbitrarily enforced restriction. Of course companies can do whatever they want. Google could ban all programs that import PyTorch on their free tier, too. Totally their choice. It’s also my choice to mention that people should look into alternatives like Replit if they’re worried about a cool notebook they made on Colab randomly getting them in Google TOS trouble.
Does Replit give free access to GPUs for any use case? The documentation[0] has screenshots that imply that GPUs cost "cycles", which are a virtual currency you buy with real money[1].