Musk is trying to turn the financials in Twitter behind and I am not surprised by some of his decisions, but I don't think the current one was a good thing to do. Regardless of what Elon does, all of that data will get scrapped eventually. The most he can do is delay things and I don't think it's good for any social media platform to rate limit people.
If people have to sign in, then it's fine. If the limit is something a casual person won't reach normally, then that is fine (I don't think 500 or 1k is enough). Most of the social media sites are doing what they can to get people to stay. It just makes me wonder how bad the financials are there.