I don't disagree with you, but I think it's less reasonable when you're a one man operation, because at that point you're losing money by not tolerating rudeness. If you're employed in support, or the manager of a support organization, "firing" toxic customers can make sense in another way: retaining competence because people don't quit, the money lost is not relevant compared to the potential risk of churn within support, etc. etc.

I both agree and disagree with you. In this specific instance, I made the service because I wanted to use it, and thought I'd provide it to others as a way of paying for server costs (my time is free because I need it for myself), but then also kind of feel obligated to keep it running because of the paying customers, which has worked out okay for the last ten years the service has been running.

In the general case, I agree that you would lose money by not tolerating rudeness, but think that one generally has a societal responsibility to call out bad behaviour, to let people know that that's not acceptable. Also, I think that rude customers are generally not worth it because they tend to cost more than they bring in, statistically.

Some people aren't motivated by trying to eke out every last cent out of a business venture, they're happy making as much money as they are currently making.

So while income could be maximized by acting differently, Stavros chooses to optimize for his well being instead.

Yes, this year I made about $100,000 (mostly I was lucky) but I had a conversation with a person who claimed to have made a million dollars in the last year and how poorly I did.

??????

It does not enter his mind that normally I make a third of that and so I am very happy with the windfall. Heck, with hindsight I could see how I could have also made a million, but only by worrying over every dollars I invested. There is more to life than spend all your time thinking about how to make more money. I have gone camping, hiking and living at a cabin by a river. He on the other hand sound like he spent the entire year glued to his computer monitor trying to make more.

Of course, you could be making the same mistake as your interlocutor here of failing to understand the other person's point of view - you assert that there is more to life than making money, but perhaps the other person has different goals to you - goals which can only be accomplished with large amounts of money.