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I remember it definitely being a very common thing in USA a decade or so ago. I never knew it disappeared. I don't think it would ever fly in Europe.
It does, or at least did. I'm in the UK, and it used to be fairly common. Over the last few years, maybe the last decade, more and more providers used the lack of tethering restrictions as an advertised feature to show that they were better than the competition.
Now that we've left the EU though, I wouldn't be surprised to see the restrictions come back. We've already lost free EU roaming on a lot of tariffs.
The fact that as soon as the UK left the EU carriers removed the free roaming shows the importance of government regulations
Of course… People are dumb enough to want regulation when it serves their needs and can’t see far enough on how it would hurt others..