In my opinion, although not a one to one comparison but I would generally prefer to have my own hetzner/ovh or any other provider whom I can have a customized chat about it. For example, I once talked to upcloud out of curiosity and they give a 24-48 hours time for you to respond and don't have concept of auto-banning in that regards.
Anyways, didn't Railway have co-location itself too. I mean, I find it funny but railway's colocation blog was actually one that I still remember the vague feeling of the exact day that I read it and it definitely impacted me (positively?) but Its sad to see that railway didn't have proper plan and still relied on GCP and not colocation.
I wish to read a proper report from Railway team and I would be curious what they might do to prevent this from happening in future.
I also remember talking to a senior engineer at E2B which also runs on google cloud and they mentioned that they faced issues of such things too but I think that they were handling it by having a large team and better support but basically relying on something like GCP does give quite some headaches.
[0]: I still think about it and have parked my domain but I wish to actually create something in the more B2B focus precisely because of these bans and abuses preferably speaking. Another reason why I am not building it right now is that I don't feel comfortable providing a service and having people rely on it and hold it to greater standard and in the meanwhile I continue to learn more about servers and I wish to think more deeply before committing too! :-D