In cases like this, I would like them to offer a paid option to take the hardware to a data recovery specialist.
For example, the email could say:
"As the plan your instance was on did not include redundant storage, we regret to inform you we have no plans to recover the data on it. We will hold the server hardware for 7 days, and forward it to one of our approved data recovery experts on request. We can also send the data recovery expert encryption keys used for your account that they will need to recover data. There is a charge of $X for this service".
I really liked this idea, until I realized that the net effect would be a post here: "their inferior hardware lost my data and then they tried to extort 5000EUR to get it back."
While on paper it seems crazy that offering a customer an extra option could never be a negative, in practice it can.
For example, the email could say:
"As the plan your instance was on did not include redundant storage, we regret to inform you we have no plans to recover the data on it. We will hold the server hardware for 7 days, and forward it to one of our approved data recovery experts on request. We can also send the data recovery expert encryption keys used for your account that they will need to recover data. There is a charge of $X for this service".