Many potential forms of ISP data collection are unlawful in the US thanks to wiretap laws, which is why we don't generally see this level of surveillance from ISPs here.

Pretty sure this isn't true. What wiretapping laws do you have in mind? I think ISPs are exempt from most.

https://www.law.cornell.edu/uscode/text/18/2511 Note the narrowness of (2) (a) and the broadness of (1)(a)/(1)(b).

2a is the exception I was thinking of.

Indeed, but I don't think you can "we spy on our users and sell the results" under 2(a).

The ISP has technically no business knowing what you visited after they transfer the bits to you

I have been living under a rock the last ten years so I thought the EU still had the data retention directive. Between 2006-2014 all ISPs were required to logg traffic in the EU. I am so glad you are right!

https://en.m.wikipedia.org/wiki/Data_Retention_Directive