But also many other games do have dedicated servers and the worst connections do not have that much of a problem.
When bungie choose to ban the people for "just bad internet" and this may be the case, bungie are just hurting them selves.
My internet is not good or bad. I have chosen the profile on my router, it gives me a faster connection response rather then a faster download. This does help a lot and I don't lag much on bungies non dedicated servers.
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That's good that you found what works for you. Dedicated servers would do wonders for destiny. It won't solve 100% but way close to it. Dedicated servers won't fix a person's crappy Internet but it'll severely balance out game play.