I would think that residential proxying would be illegal already, as it is a network intrusion. The trick is chasing down the offenders, proving their actions did harm, and getting them to pay. None of those steps are easy, even if there are laws to assist. Otherwise, spam would be a solved problem.
Is it still an intrusion if the user accepted the shrinkwrap TOS of an app that trades them “free TV” in exchange for allowing that app to operate a proxy (via an “app monetization” SDK) on their network?
Yeah, no one actually agrees to all of the individual terms in EULAs. That’s the first sign that the law will be nearly useless to address any aspect of these problems. It is already one-sided, and that side is not a friend to the consumer or general public.
It isn't illegal, there is no law against "network intrusion" which is a term you just made up, and if it was a real term it probably wouldn't cover this. There are laws against things like "unauthorized access to a protected computer system".
