Erick, sorry was out on a vacation and just now getting to this. From a Microsoft Terms of Service, I honestly don't know. From a technical perspective for the longevity of the flow with per user licenses to ensure it continues to work withouth having to export/import to chnage the Flow owner, that woul 100% be the way to set it up.

There is absolutely a risk of ending up in a costly place. However, I still think there are some benefits that can be had from this. I have a lot of clients successfully using both of these tools and avoiding a safe and costly place. I also agree that writing code can also be a legitimate alternative to these tools and have worked with companies that have done that as well. However, not all companies are in a place where that is possible for them and Logic Apps and Power Automate are great tools to have in their toolbelt. When talking about all of these options, C#, Azure Functions, Power Automate, Logic Apps, or any other tools, it's all about choosing the write tool for the job and ensuring that it is properly managed and governed. While I appreciate the insight and I agree that you can end up in a sad and costly place with either of these. However, based on my experience and work with 100's of clients, I strongly disagree with your premises that you will ALWAYS end up there.

I've been using Logic Apps for years and it's enabled me to bring value that I wouldn't otherwise have been given budget to accomplish. There are always tradeoffs.