Can everyone in the neighborhood (assuming they all use same provider) max out their connections at the same time? AKA Does the upstream provider have that much bandwidth?
Definitely not, I mean, even web hosts and colocation centers will oversell their bandwidth.
That said, I ran a internet radio station + free image host node on my residential connection and was pushing a few TB/mo up and never got any complaints. And BitTorrent is obviously quite popular in Sweden so I'm sure there's a bunch of seeding going on.