I'm beginning to see free read-only from paid relays isn't working. The paid relays are struggling now under read-only load to such a degree that is paid users can't use them. But if relays require private keys to read then a non-custodial personal proxy server would not work until subkey delegation becomes a real thing.

Nostr needs work.

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The proxy could pass the challenge and response to and from the client through some protocol extension (client/user would still have to trust proxy not to abuse the authenticated session).

I'd rather like to see an anonymous solution, though, like some kind of usage tokens based on blind signatures.