Using git and mercurial for large binary file storage is, 100%, wrong. Why? They're not designed for it, so they handle it really poorly. Hacks like Git LFS and annex were made for a reason.
From sourcehuts perspective, they need to serve all their customers, and an extreme performance outlier for a still small platform could degrade the experience for others by becoming a significant part of the server load. Thus, it's fair to say no.
Just like Github did back in the day to CocoaPod: https://news.ycombinator.com/item?id=11245652. They also got very unhappy.
Both the original story as well as the comments regarding Andrew's usage for Zig.
It's fine to not support certain use cases because it's too much effort or otherwise too expensive. It's not fine to, as a service provider, tell people that their programs are (and I quote) "wrong".
If you're okay with that then that's your choice, but for me it really turned me off sourcehut.
No, not really, if done politely. Which seems to be the case here.
It also might "work" to use a large crystal vase as a hammer, but it's still "doing it wrong".
If anything, I'd fault sr.ht for having too vague usage policies and then telling users they are in violation of said policies. That's not good. But they are in alpha, so hopefully it's something that'll improve.
Similar thing happened on Github with CocoaPods: https://news.ycombinator.com/item?id=11245652.
Just because something works doesn't mean it is a suitable implementation or a sensible decision.