alt Hacker NewsTrue, though unfortunately people can not be trusted to declare their intentions so the residential proxies will ultimately have to be sacrificed and given they are fairly easy to identify by behavior I could foresee the feds now having a reason to round 'em up faster. They already took out NetNut, IPIDEA, SocksEscort, Doppellganger and the "Kim Wolf" Offshoots.
Some of the more legit providers have KYC in place, and do literally require you to declare you intentions to open an account, and block certain traffic proactively unless you can prove a legitimate use.