This is what throwaway credit card numbers are for. I'd like to see that concept become more mainstream. If you make it hard for me to cancel a service, fine. It's a single click in a well-designed financial app: delete card.
I think the primary feature is limiting the damage of a compromise.
It sounds great to also use this as a way for the customer to cancel service with an unwilling company, but I think in practice they may come after you with a collection agency.
SiriusXM did this exact thing to me. Temp credit card declined and they kept my service active and continued to try to collect from me. I wasted hours of my life going through this cluster.
