Right, but what stops you and I from using a VPN? Your logic is sound from the provider point of view - but I can set up my own VPN quickly and cheaply. So for me the end user nothing has changed as far as I can see it.
And if anyone asks? Oh Im just using <approved VPN>
“Block all VPN connections”
OpenVPN packets can be disguised to look like regular non-VPN packets. This won’t stop anyone who’s mildly determined