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IT cost basically. Whatever is the most cost effective and successful way to do it is likely what they'll do. If they reckon most people won't know how to change their DNS, and this is the easiest way for them to implement it, then that is what they may well choose. I honestly couldn't say, but...

Depending on how your ISP blocks a site, you can sometimes get round it just by changing your DNS settings. But yes, VPN is still a solution, but anything decent usually requires a subscription.

Kodi doesn't have any streams of its own, it is just an interface for users to easily connect to streams / servers like circfree. So it will impact on all streaming.

No wonder some pubs are struggling if landlords get stung for a grand for a £30 Kodi box...