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I might be misunderstanding but doesn't the feature also help prevent home users' devices becoming part of a DDOS effort (high number of outbound connections)? There's stories here on HN about IoT devices and infected PCs/phones participating in DDOS on command. So I can see an argument that a home gateway device should try and help prevent participation by devices behind it.

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In cases like that the correct answer is to detect weird behavior and call the customer on the phone to ask what's going on. If they say they know what it is because they're running Tor or hosting Ubuntu ISOs or playing P2P games or whatever, you don't have to do anything.

If they say they have no idea what you're talking about, you get to tell them they're infected, so they actually fix it instead of typing their bank password into the infected box the next week because you automatically removed the "huh, internet's slow" that might have led them to investigate it otherwise.

I like your idea and agree that implementing it would improve outcomes for customers. However, the ISP would be on the hook for additional customer support; it's a lot more involved to outfit your call center staff with playbooks for explaining exploited devices to an average customer than it is to toss in a semi-autonomous blocker. This does make things worse for "power users", but ISPs may have also found that said users are more willing to pay for special service agreements (a small business account for example).

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