I'm not saying they are doing anything right or wrong but they are probably a profitable company who could have theoretically spared to absorb some (or all) of it without passing it through to their customers
Why should namecheap subsidize the cost? That makes 0 sense and I say it as a namecheap customer. I don't see how its fair for them to cover the cost and I don't want them to do so because I am a happy customer and don't want them to go out of business or lower their product quality.
Precisely, Not to defend Namecheap but we are in a different time. I don't know everyone's age on HN. But If they were just 40s, they would have lived in a zero interest era for 15 years and nearly all of their professional lives. We are having inflation, cost of money going up. The margin that used to work for Namecheap may no longer works for them now. And you have plenty of option outside of NameCheap. And again, none of this could be called rent seeking.
Of course there is an argument in US and Tech today ( as shown in many of the comment ) that margin is somehow evil. And should be as low as possible. I guess that is a different argument.
Instead, they are passing it on 100%.