Visa, PayPal, MasterCard, discovery etc... gave them an ultimatum, if they don't act fast any money transfer becomes impossible if they can't pay no one nor receive any money, what would they do? We're just fucked
End of the day, if capitalism is the argument for why itch.io gave up without a fight, it's also the reason I can comfortably say- tough luck, I'm taking my business elsewhere (permanently).
Reliability (and of course, having an actual product) is king, and in this case itch.io has demonstrated it is not a reliable platform - not for its devs, not for its consumers- and it has delisted games from peoples libraries, to boot. Why would anyone ever use a service after such a scandal?
And such a "merciless" capitalistic response is natural, as well. Why should customers or devs impacted feel any loyalty or solidarity towards the site which screwed them over in a big way?