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Off the top of my head, managing 100 different database instances takes a lot more work from the business standpoint than managing 1 database with 100 users.

The article also mentioned that they isolate by project_id. That implies one customer (assume a business) can isolate permissions more granulary.

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Yes it’s exactly this. There’s not a neat permission boundary when you have users, orgs, projects, environments. Let alone when you add RBAC too.
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With multi-tenant vs multi-database decision one driver would be the level of legal/compliance/risk/cost/resource drivers around how segregated users really are.

Multi-database is more expensive generally but is a more brain dead guaranteed way to ensure the users are properly segregated, resilient across cloud/database/etc software releases that may regress something in a multi-tenant setup.

Multi-tenant you always run the risk of a software update, misconfiguration or operational error exposing existence of other users / their metadata / their data / their usage / etc. You also have a lot more of a challenge engineering for resource contention.

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