That's a very naive take imho. As far as I am aware your default DNS server on widnows is obtained via DHCP, meaning for most people it is chosen by the hardware provided by your ISP. Most people would include working DNS resolution to their "I bought internet access from you", even though they might not know about DNS and you are tecnically right. But I bet even judges would see it that way.
Yea, arguing that DNS resolution is not part of your internet service is like the utility arguing that water isn’t included as part of your hookup, the real service is the pipes and you can source alternate water to fill it
Even the router isn’t really your ISPs job, I bring my own and don’t care. Of course some users are just going to do the easy thing and get Router and config from the ISP. But that’s less bad than DPI for example.
Not to excuse anything, but there’s a significant segment of reasonably computer-savvy users between “hackers” and the average Joe, who do know well enough what DNS is, just like they know what VPNs are and their use for streaming and the like.