It's been nearly six years of free. That's pretty gradual strong-arming.

Note that per user limits continue to apply, so people have as much incentive as they ever did to upgrade, plus for any new domains/projects people will naturally either migrate to other options (then consolidate services around these, moving themselves off Google) or start paying.

Not convinced there's any need for hostility on either side.

This is to kill the competition; At minimum to gain a competitive advantage.

I use it for a small activist group that I help run. There's just no way we'd have the budget for it.

I'm curious what happens with the people that are in limbo - that is still in their 30 day trial period and are unable to downgrade to a free version because of that.

Me too. I just set up a client's email with Google Apps a couple of days ago intending to use the free version. Its going to be a big headache if they can't use the free offering.

Just got an email from Google saying that this account will remain free.

Doubtful, plenty of people would jump on the chance to create a competitor, especially since they could market it as a cheaper (or free) alternative.