To me, the insult comes less from the modest price increases, than from the fact that the economy is slowly imploding and they have the nerve to increase prices on an already barely-enough product. Just seems like a weird move.
They're increasing their prices, because like every other company out there, things cost more to provide. It's basic economics.
You're going to see everyone increasing prices of their products and services. This isn't just an Apple thing.
Neither of you are wrong. The fact that many of these services were so affordable for so long is nothing in short of amazing. It'd a hard-pressed situation if they stayed that way any amount of time. Hopefully, the increase in money is going towards those employees and those who are making the actual content, who are also feeling the squeeze (although, I doubt it

).
Speaking of which, people's wages indeed haven't caught up. Being that much of this is all entertainment/leisure*, it is one of the first things to go to the chopping block when people need to slash their budgets. Folks should be slashing their budget of things they don't use regardless. Not just when there's a price increase, but I do acknowledge that price hikes do help remind folks and help them reevaluate.
I'll be another to say that ATV+ is great. I really enjoyed my free trial of it. However, even though I can wholeheartedly recommend it, I don't think it's "the ss (streaming service) to end all ss" type deal. It's simply another ss that I plan to rotate in and out as new content comes out (
Central Park and
Foundation for a couple), and depending on what deals will be available next year (I got HBO Max on annual for 40% off, so that'll keep me occupied until the end of 2023).
* I'm sure some people justify iCloud+ for work related activities. Music for their commutes, and perhaps ATV+ and AA along with that for those that take public/mass transit. Fitness+ can be worth the $$ if it's just the ticket to keep you in shape.