Also how can blockwithholding from rentals like nicehash be proven or tracked?
You can't prove or track it unless you can see the logs of (1) each share submitted by the miners, and then to (2) NH, and then to the solo pool.
Since 1 & 2 are opaque, you can't see what they say the share diff is.
The only ones that would have enough data to monitor for block withholding is nicehash and they'd have to keep track of every miner's share count and block finds and report the data - this is NOT a big task. As this
should be nicehash's responsibility, especially considering the fee they charge, I think they're not providing an adequate service. No one has held them accountable for it and have been blindly buying hashes from them. The miners providing the hashrate
stand to gain by block withholding as they get paid regardless of whether blocks are found or not, yet it is in their favour to keep bitcoin difficulty down. Buyer beware.