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I hate to break it to you but services have been routinely blocking residential IPs associated with being part of VPN endpoints for the better part of a decade now. Akamai will even sell you (granted they are just reselling another vendors product) a database to do this.

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The number of residential IPs acting as endpoints is vanishingly small. It isn't an issue. The number of residential IPs that are part of botnets is something else. They are not blocked. Their bad traffic might be, but nobody cuts of an IP simply because a machine on it got a virus once upon a time. If they did, we would all have to negotiate for a new IP every time a machine was compromised.

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