On some ISPs, all the customer routers in a given area are placed in a large legacy subnet, so if another customer adds a manual route to RFC1918 space using your router as next hop - the traffic will arrive on the WAN interface of your router. Some routers will actually route this traffic inside.
Have you ever tested this and verified that your router doesn't do this? Probably not, because most people haven't. They just assume that it can't, and get a nasty surprise if someone demonstrates that it can.
By and large, our very-much "real world" customers are "self hosting" — usually on bare metal rather than a VPS, and usually with providers you've probably never heard of (ColoCrossing and ServerMania seem to come up fairly often among our US-based customers.) These hosting providers are all very much in the style of "you lease each machine as a separate contract; each machine gets one public IPv4 address included in the cost; private networking [i.e. an explicit VLAN] is an extra optional feature you can enable after the fact, and only works between higher-end machine types, rather than being a given, because our lower-end machines only have a single NIC in them [besides the one that's part of the BMC used for IPMI]."
What I assume is happening here isn't literal "self hosting" — these random non-IT-oriented customers wouldn't know the first thing about it — but rather that a given customer of ours has paid some "vertically-integrated IT consultancy" to both build and host their service for them; and said consultancy has chosen to use bare-metal hosting to host the resulting service, to minimize their own OpEx, and therefore maximize their margins. (In fact, I bet they're often packing several such customers onto a single box.)
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Also, in a more professional capacity, I investigate the hosts behind IP addresses behind bulk-registration / DDoS attacks against our platform, in order to create signatures for them. Given the way some of these attacks seem to work, a large number of machines on the Internet — especially in Russia and [some parts of] Africa — seemingly aren't only un-NATed, but in fact have a public /24 or even /22 directly attached to a single box! (If traffic was originating from a random subset of a /24, it could just be someone spinning up a hundred VMs on top of some small colo's OpenStack deployment, sure. But tandem traffic from every IP in a /24, and only exactly said /24? That looks pretty much exactly like the sort of tandem IPv6 traffic that is generated when a box has a /48 or /56 assigned to it.)
From your very last statement, I think you've confused self hosting (like buying a VPS from Digital Ocean and hosting your own blag) and how the real world works (like going to Dell.com and ordering a new laptop). "The mainframe" these days is almost always behind a L4/L7 load balancer or other network device and very rarely directly addressable.