$20 on API pricing is what Claude Pro will give you in a day. It doesn't matter how good cursor is, this is a massive limitation and price differential that they can't overcome. Even if they go with DeepSeek which is much cheaper, they are still significantly more expensive than a Claude subscription.
Also, that wonderful big beautiful bill in the US just limited what states and government can do to AI. It's a clear and open highway for Anthropic, OpenAI, Google, etc. They don't have to worry about any kinda rug pulling on Cursor or anything. They can literally compete with their "customers" and put their "customers" or "partners" out of business with zero consequences.
Cursor deserve the criticism, but its been pretty obvious since they introduced the new Ultra plan that we were going to see classic enshittification on the formerly premium options. Very frustrating for long term supporters especially.
Note that although this update apologises for the miscommunication (which looks more like deliberate obfuscation), the only option for getting what we paid for (I'm on the annual plan) is the menu setting above, which should be default on!