Well the argument appears to be, people put them in their apps instead of ads. (Or more likely on top of ads.) The argument is money.
replyThe users presumably don't know about this, or you know, they clicked, "I agree."
Nearly Half of LG Smart TV Apps Contain Residential Proxies
Of course the issue with blocking residential IPs is that then they would be prevented from doing normal things on the internet.
replyAt which point, millions of people will be forced to complain to their local representatives and... hey presto? :)
Why would anyone who doesn't have a use for a residential proxy have an argument for residential proxies?
replyI use them to scrape closed sites to make the information more open. For example YouTube.