Sure, in principle that’s true.

But in practice, is it really fair to expect everyone to understand the health risks of every possible ingredient?

Likewise here, is it fair to expect the average consumer to understand what it means to host a residential proxy? Or even what a residential proxy is?

The article is quite clear that LG runs an "app store" where 42% of the "apps" likely contain residential proxies, and LG is going to make its "app store" developers stop doing that. From TFA:

> “A residential proxy network is not an intended use for LG smart TVs, and LG Electronics is working with developers to remove the residential proxy option from their apps on the webOS platform,” Taylor said. “If this option is not removed, these apps will be suspended.”

This says nothing about your own software installed on the TV, should that be possible.

But even if you ran your own software on your TV, would you run a proxy service? Given you already have a residential ISP, you wouldn't need to hook your TV up to a botnet and buy residental ISP access for your scrapers via your own, or other unwitting suckers', TVs.

Your hypothetical of wanting to run a Tor exit node is silly. Most Tor exit node operators run them knowingly on dedicated hardware, usually in a datacentre, not their own home, and prepare themselves legally for when they inevitably get emails from law enforcement, or worse, raided. You'd almost certainly firewall the destinations it can reach, you wouldn't let it have access to your own network, and you wouldn't run it on your TV.