Earlier quoted context omitted.
Nope, it doesn't. The security model is based on your firewalls and routing, not on NAT. NAT just gets in the way and makes it harder to understand what's going on. For example, on a normal home network, if you don't have a firewall on your router then your ISP can connect to anything on your network. Even when they don't control the router and even if you're NATing. If you didn't realize this then apparently NAT did…
Can you say more about the ISP connecting to any computer on your network? I can’t find any references to this aspect in googling the right terms and the concept is foreign to me. There are a bunch of ways to break it, or misconfigure it. But I have idea what this isp method is.
For some ISPs you could connect a switch or hub (they still existed with cable came out, 1gbps switches were expensive) and connect multiple computers and they would all get different public IPs.
Back then a lot of network applications like windows filesharing heavily used the local subnet broadcast IP to announce themselves to other local computers on the network. Yes this meant when you opened up windows file sharing you might see the share from Dave's computer across town. I don't recall if the hidden always on shares like $c where widely know about at this time.
ISPs fixed this by blocking most of the traffic to and from the subnet broadcast address at the modem/headend level but for some time after I could still run a packet capture and see all the ARP packets and some other broadcasts from other models on my node, but it wasn't enough to be able to interfere with them anymore.