If Phorm were a new company then imo it would be fair to deal with them freshly.
However, they appear not to have a 'clean slate' and not to have addressed previous issues. Googling for 121media, their previous name gives some worrying results. I also found it worrying that after 121media narrowly avoided prosecution for spyware on a technical legal argument in the US, they then changed their business model.
Their public message was along the lines that the previous business model didn't work and so a new one was being developed. No mention that they recognised that it was sailing close to the wind in terms of privacy. So either they thought it was OK because it escaped the system, or they didn't want to address it openly.
As I understand it, there is (some) new management in place. As far as I
am aware, there still hasn't been any public distancing from the previous doubtful PC invading software.
Some time ago the Phorm website showed what was called a 'bridge' advert, which is no longer there. It may be that wasn't the new tool, or it may be that it shouldn't have appeared. But it showed a use of a tool as intercepting a Google search with a pop-over, or something similar. ie. someone searched for something, saw the results on Google and then had an advert appear over the top of it. So that interception was after the 'new business model announcements'.
So yes, I think the networks need to be very careful, but I also think they will inevitably be under pressure. Phorm is involved with some very big businesses, so once underway it is not going to be as easy to back track as it was dealing with hidden cookie dropping frames from a few affiliate sites.
We've spent years fighting various 'interceptions' - I just hope the lure of money doesn't put us back a few years.
With the amount of clout that Phorm and any 'partners' have I think we can be sure that any grey areas will be pushed legally to the very edge. Also the scale of any operations that go ahead is going to be huge. That requires some very serious thought about suitability for affiliate marketing.
I wouldn't underestimate the effort that will be put behind Phorm - it has appeared as an apparent 'lifeline' to failing ISP business models and if it can work, they will make it work, to rescue revenues.
Whether the ISP's will really bother to value their customers I'm skeptical - perhaps we can only judge most of these big players real attitudes by the 'we value your call' mantra.
Perhaps I should live in a commune and relinquish capitalism ;-)