Microsoft did a crap thing, but regardless of the reason the data went away, their customers should all have had disaster recovery strategies and robust backups. The more precious the data, the more important it is to have robust backups.
I still feel for those affected, as I have lost data to my own mistakes in the past.
Maybe it should read "170,000 nonprofits having to invoke their data restoration strategies and now in the market for ethical cloud providers, after Microsoft predictably lets them down".