One of my cable installers told me that rate limiting is done in the cable modem, so people would run pirate firmware that eliminated the artifical limits and run at the natural limit of the connection. People had fun with this for a while until the network engineers figured it out, and now people exceeding the speed limit get their connections shut down pretty quickly. But anyway, it makes sense the the cable modem really isn't the customer's to control.
I own and control my own wireless router because I want to play with things like DD-WRT, use OpenDNS, etc., but I see the cable modem as no different from the utility box down the street.
With cable modems, does/can the provider push firmware?
The provider is able to change the settings through two primary methods.
1. DOCSIS configuration file - this is the file your modem downloads when it comes online and includes settings like your speeds (Upstream/Downstream service flows) and it also includes the SNMP settings (used for #2).
2. SNMP - The MSO can also remotely monitor and change your modem via SNMP. There is a large number of DOCSIS MIBs that every cable modem must support in order to get certified and there are also vendor specific MIBs that a modems manufacture will add to support specific features of that modem.
Without SNMP it would be very difficult to maintain a cable network. Other types of access networks have similar features.
I don't know why exactly it worked out that way, but the telephone system is designed to deal with consumer electronics and the coax cable system is not.
It didn't used to be - until the federal government busted AT&T's monopoly, it was illegal to connect non-AT&T equipment to the AT&T network, at least electrically. This is why in old movies you see people dialing ISPs by hand with a phone and then setting the handset down on a cradle - the cradle was the modem, and it interfaced with the telephone network acoustically. The demarc (at least as we know it today) was presumably introduced after the government told AT&T they had to let people have their own networks, rather than considering everything up through the phones to be part of the telco network.