Part hubris, part greed. They believe their own hype and either think that other people will believe it too or that they can force it on the unbelievers, thus leading to great profit.

Where is the profit? Enforced cloud accounts and storage mean users' information is permanently held ransom, and users shall pay monthly to retain access to it.

They can also pick through users' files and sell that information to data brokers and advertisers, if not also various government intelligence agencies.

Actually that last one is more about the continued ability to go on bleeding users dry, but it amounts to the same thing.

it just takes a few stupid people in higher positions to negate the work of hundreds more competent people.

I don't think you can apply Hanlon's Razor to actions of corporations.

They're relying more and more on AI coding.

no no no, you misunderstand, this is malice, but the reason backing it is stupid and short sighted. i mean, unless the game plan was to run off their customers like a movie troupe