You should probably read the summary of what they are doing. It sounds to me
like they are merely developing the tools and making them easy to implement.
A privacy respecting ISP doesn't mean one that doesn't comply with the laws.
For instance many ISPs abuse users trust/privacy.
For instance the ISPs here redirect users non-existent DNS requests to an add
based search engine. This deviates from the standard.
Other examples for instance are data retention. The US has no data retention
law at the moment although every ISP logs IP/Billing information. While
service providers have to release that information they can only be required
to release what they retain. An ISP could simply not log IP/Billing
information, an email service provider does not have to log this either, nor
a forum, or other Internet service.
While this doesn't get around the snooping by the NSA in regards to wire taps
the ISP is trying to thwart mass illegal surveillance of its customers. They
describe VPN and similar services which might due this to an extent or make
it harder. Still- this might also imply they are working on freedombox or a
similar device. Maybe they would distribute this device as part of the modem
given to customers and/or router.