The ways you are asking the government to mutilate the internet are quite similar to the ways the media industries asked the government to mutilate the internet.
What I'm calling for is exactly how things are already supposed to work.
The US government should already be infiltrating hacker groups and identifying infected American computers. Internet providers should be informing customers that hackers have compromised their devices.
Characterizing this as "mutilating the internet" is ridiculous.
Our government condemns and even demolishes people's houses when they're dangerous or become a public nuisances because their owners fail to maintain them.
Most Americans agree with this policy and don't see it as infringing on their freedom at all. Our choice is to enforce basic standards or allow our cities to become horrible places to live, and the same is true of the internet.
So yeah, it seems pretty reasonable to give people repeated warnings, then slow or pause their internet until they take basic steps to stop their connection from being used to abuse others.