Weird Pricing Structure

I'm still on the Free subscription, but no doubt in time I will need to upgrade as the business grows.

But I have been looking over the Subscription Details again in my account settings and something seems weird/wrong.

For the Free account I get Unlimited Customers (this is fantastic), and limited invoicing/estimates (fair enough). But when you start paying on the Standard subscription, the Unlimited Customers is cut back to 500. Huh?

I can't say I have ever seen an upgrade in product with any service provider I've dealt with in my lifetime do a downgrade on some of the functionality as you pay more for it. Is this a mistake?

And what happens if on the Free subscription I have more than 500 customers and I make the upgrade to the Standard? Do I lose Customers from the database?

Screen shot attached.

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