As for the bots, I thought the same thing, but it is indeed a huge problem. They've brought my websites down pretty frequently recently. I tried Cloudflare but visitors complained, and I think you can't win against the bots anyway, so I've resorted to performance improvements and serving every request.
- let more traffic in, eat the compute cost
- block larger cohorts of traffic, affect many real users
- babysit the rules to get them just right, lose time doing that
In my experience the residential proxies exist but are not that common and many aren't trying as hard as they could. It's really a war of which side wants to spend more attention on the problem.