I suspect the not being able to get your pics back without paying thing was a knee-jerk reaction from upset people who assumed the worst. When you're upset, it's very easy to misread things and assume a problem is bigger than it actually is, or to exaggerate about someone's shortcomings when you're angry with them. At least that was the sense I got reading the comments.
At any rate, it still sounds like a bit of a jerk move to surprise people with such a change. Seems like the change was badly managed. My guess is, there's a money problem at the company, and they need to do something fast. On the extreme end, if they shutdown, then everybody loses all their pictures, with no recourse at all.
I've never used them. Glad I'm not affected by this.