As with many things in life, if it didn't work, they wouldn't do it.
So to answer your question, yes, it probably does reduce churn, if only slightly. Is there an occasional person who goes to try and cancel, runs into this byzantine process and then says, ah fuck it, I'll just stay subscribed so they don't have to deal with this bullshit? Yes, but probably only infrequently.
Instead, it infuriates all the rest who DO go thru the byzantine process and add more frustrating to whatever reason they were already intent on canceling from in the first place, as was demonstrated in this OP's chat transcript.
So to answer your question, yes, it probably does reduce churn, if only slightly. Is there an occasional person who goes to try and cancel, runs into this byzantine process and then says, ah fuck it, I'll just stay subscribed so they don't have to deal with this bullshit? Yes, but probably only infrequently.
Instead, it infuriates all the rest who DO go thru the byzantine process and add more frustrating to whatever reason they were already intent on canceling from in the first place, as was demonstrated in this OP's chat transcript.