This was a general statement, no need to nitpick every detail. DC proxies are not as accurate for geolocation, they are also often flagged as such or face higher scrutiny from bot protections.
Okay, sure, in theory someone could use a residential proxy to evade unjust blocking. Whether that has happened at any point in history or not, I'm not sure.
In practice, the vast majority of residential proxy usage would be for other (non-ethical) purposes.
In practice, the vast majority of residential proxy usage would be for other (non-ethical) purposes.