I don't think it's good at all, it's a terrible experience. Even if someone is becoming an ex-customer you should treat them better than that in case they might come back to you later. Burning your bridge for an anti-halo effect is just a bad business decision.

Sadly it just doesn't surprise me. In some ways/places Apple pulls this kind of crap.

It's good that Apple has a way to fix this if you call support (a few years ago I don't think they did), but this should all be fixed.