@phi2008 surely you're exactly right. ISP's are going to want to bully users into giving up their own chosen routers and trusted most highly critical firewalls and get some unknown cheap crap CPE from the ISP that the user knows absolutely nothing about, and can't control or trust. All so the ISP can lower their costs and push expensive extra services at the user. They presumably dream about the good old days of BT and PSTN where BT could keep tacking on extra annoying charges for things like number blocking, voice mail, redirects and who knows what. Mere conduit isn't juicy enough at the moment. Horrible.
And presumably dumb CPE with all the variable and intelligent software running on the ISP's servers will be very latency-critical unless the software is downloaded on the fly and cached locally long-term. I wonder if soft, dumb, highly remote-dependent kit that works on a 300 Mbps link would still work on a 0.5 Mbps link like my neighbour's with 60 - 300+ ms latency?
This isn't a new idea, as I seem to remember someone else developed a soft, remote-controlled dumb device, a couple of years back - can't remember.
I need to read that document, as what little I know about such systems was from reading about that other half-forgotten development some while ago.