> Generally speaking, it's much better to use alerts instead of hard limit.
Probably for companies and opportunistic individuals with a high risk tolerance. As for me, just give me hard budget caps. It shouldn't be a choice between supporting one of the approaches, when you could let each client pick what they want.
Want an alert? Configure one.
Want a hard limit? Configure one.
(just make the configuration easy and visible)
The thing I see is folk putting a limit when given the choice. Later the situation changes, they want mega scale. Then don't fiddle the settings. I think it's a documentation & process problem.
1000 years ago, before CI/CD took over folk would have launch/go-live events, where teams would do a good checklist. There were pre-launch meetings to review, which included load checking.