Because they're not idiots? Hetzner doesn't want to end up in the cross hairs of authorities coming down on companies doing business with sanctioned entities. This is their legal department speaking, not the technicians and a change in postal address is so transparent that it will not work.
No, they should be fine, they can easily document their residency, those that moved to Turkey as well. But just setting up a letterbox will likely not work and may even backfire.
Yes, but for Hetzner execs there is more at stake than $ here and they are more than aware of seeing a change of address in light of this notice as a fig leaf without substance. Not everybody is incompetent, even if some are.