Must be a regional thing, because where I live, mass internet adoption pretty much started in the 90s with the dedicated Ethernet connections. As such, every PC had its own IP address, it was a time before home routers. Later, the dreaded NAT was introduced, but the ISPs kept their "LAN" networks free. People hosted all sorts of things. It was a common practice for people to host an FTP server, a game server, an IRC and such on their home computers, and that "LAN" was not subject to the internet speed limit that was capped at around 600kb/s while the LAN would go as fast as the hardware allowed.
That sounds like a very specific setup like a university dorm or perhaps managed apartment complex. But I doubt that was the norm for home internet connectivity anywhere, ever.
Do you live in DARPA