I think the main point is that there are some negative consequences to allowing folks to opt out of what were previously shared utilities. Intentional or not - we had a form of social contract around pricing utilities, and that contract falls apart if the wealthiest can buy their way out of future payments.
That doesn't mean I agree with the way that california (and many other states) are trying to hamfist those who buy solar into subsidizing utility companies, but it does mean there's a real conversation to be had that's not as simple as "Fuck the poor - I have mine".
It's a similar conversation to the one around gas taxes. EV owners avoid paying them, but gas taxes are primarily funding road infrastructure, which is still shared by EV owners. So we had a social contract that worked, and we have to find a replacement. That's a real discussion, and not some simple black and white "They buy EV, they pay less" talk.
I suppose the question is what we expect to make of the electrical grid in the future and how to pay for it. If the goal is to stop having a grid, the death spiral seems like a reasonable way to get there.