バービ sounds more correct to me or バールビ (ba- ru bi) if you want the r sound but if you look it up it is shown as バービー in Japan. Strange that they would elongate the ビー.
I lived in Japan for almost 10 years, so I'm somewhat confident about that. Translations, especially phonetic ones can be a little weird sometimes.
Because your 0$ per month after dropping them doesn't hurt their bottom line.
Corporations generally weigh the risks and the benefit often wins out and they make more money because there are enough people that either reluctantly cave into the fee increase, forgot about their subscription or just don't care that it's going up.
It's fairly seldom (but seems to be increasing over the years) to see so much backlash that a company walks back on what they were planning to do.