They have been using this business model for years for their VPS products and Hetzner has slowly been moving to unify their products because it's such a disjointed mess right now.

Like, it's completely unreasonable to expect to pay more.

They are doing it to stay competitive. Remember, cloud computing is a highly competitive market and customers can and do switch providers.

This is actually revenue-loss for them as canceling a dedicated server in the middle of the month will no longer result in a full month charge...