This is basically the only reason they are cracking down at all. I'm sure Netflix doesn't care, but if the rights holders see them as being "soft" on proxy use

This is basically the only reason they are cracking down at all. I'm sure Netflix doesn't care, but if the rights holders see them as being "soft" on proxy use then they might charge more or sue. They will block what is easy to block so they can point and say "hey look, we tried!"