Let me guess, you’ve never tried to host anything public yourself. If you run fail2ban long enough you end up with a blocklist that heavily skews towards a particular set of countries. Residential proxies are regularly used in criminal activity. I’ve personally and professionally been impacted by TAs using residential proxies to get around firewall rules as part of compromises.
If authorities in those countries took action against TAs and scammers more aggressively, perhaps blocking their entire country wouldn’t be seen as a valid defensive approach.