Flagged and then... What exactly?
If people who have a smart TV have their smart TV participate in a residential proxy, then it's billions of IP getting "flagged".
What's the use of flagging those?
When every IP is flagged, none is.
There's a non-trivial quantity error here that makes the argument of a majority qualitatively incorrect.
It's not billions of IPs that are being used in residential proxies, it's not all smart TVs.
There needs to be a vulnerability and hacked devices OR there needs to be a very low quality and shady vendor that is offering products at too cheap prices and needs to make ends meet in order to compete at that price. Probably chinese.
This would be in the range of 1 to 100 million smart TVs. sorry for the wide range, but definitely not 1Billion or every TV.
So to the extent that the ratio of infected to non infected IPs is low, then providers can block the infected ones to a great effect.
But for now I'm already cut off from half the internet due to endless crimeflare captcha loops... I just don't visit those sites anymore because I literally can't.