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Yes, it does. An MITM attacker can deliver malicious code to you which runs in the website context, and can exploit any bugs in your browser's javascript engine.

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Sounds like you have a bigger problem if your browser isn't properly sandboxed.

ISPs previously did this. Not JS exploits, but they injected ads into HTTP web pages. Really popular ISPs, on the level of Comcast.

Sounds like FUD

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