There will always be complainers in any case. It’s a question of degrees and impact: is this particular criticism so widely held that it significantly impacts the project’s financial viability?
It’s impossible to say without hard data. Some sort of survey could be useful. I’m sure there are statistics nerds in the community who would be willing to help collect data 🙂
It’s a practice called soft-deletion. The idea is that you flip a “deletion” flag on customer data and record the date of the deletion request. After some time, typically 30 days, a garbage-collection cron job will identify your data as having been “soft-deleted” N days prior, and then permanently wipe your data from their servers. This gives people a chance to restore their data in case they accidentally moved it to the trash or change their mind soon after.