Exactly what the title states, do IP bans really happen? If so, that's quite a stupid thing since a friend can be botting and you playing normal, then you get banned too?
Never heard of anyone IRL getting an IP Ban. Blizz just bans your account, but their model is based on that you learned your lesson from account ban and your free to create another one.
Yes! If they see a lot of activity comming from one IP they WILL look for patterns. (like 20 accounts farming instances) Ive had several IP bans.