VM have been like this for years, including the NTL days.
Generally speaking if you in a bad area, they will either tell you its acceptable service, or just give you a ongoing discount and say take it or leave it, when they offer the discount they also typically tell you a upgrade is forthcoming, but 9 times out of 10 it doesnt happen, typically the only upgrades I ever witnessed was the one's carried out to match rollout's of new packages. I dont recall ever having an upgrade done on my node for "capacity management" alone.
What seems to have happened with this vivid rollout is some more corner cutting, someone flicking a switch without upgrades or upgrades have been done to capacity but not to the same scale as the speed increase and as such increasing congestion, even to previously good area's.
Regarding single threaded I think isp's had a point 10 years ago when operating systems had static sized tcp buffers meaning if a OS wasnt tuned, then the buffer could be too small to max out a connection single threaded, and regional CDN's were not the rage so downloading was often done over the atlantic compounding the buffer problem, however now every modern OS auto tunes the tcp buffer so at least on the client side single threaded performance should be adequate. My experience is on a good isp, mainstream services such as youtube, netflix and microsoft updates can max out my FTTC line single threaded.
Now there may be a valid argument e.g. if on a gigabit connection a single thread might only reach a few hundred mbit, but that wouldnt be noticeable to the end user and not break anything, a single threaded speed low enough to break services (generally sub 10mbit), is an isp side problem most of the time. Isp's insisting on multi threaded speed tests generally have something to hide.