Perhaps I am wrong. what stops the router in default configuration from passing private ip's out of the WAN?
If the IP is in the same subnet as your LAN, then there is no route that tells it to send it to the WAN interface - LAN traffic will stay inside the LAN, as it's the same subnet.
If the IP is a different subnet, then that traffic will get sent to the default gateway provided by your ISP, at which point it's your ISP that does what it wants with it (usually it will drop it).
If you have something on the WAN interface that is local to you (for example, a modem), then you will need to add an IP within that same subnet to your router's WAN interface, so it won't forward it to the default gateway. This is required if, for example, you want to access your modem's internal web interface. It MUST be a different subnet than your LAN. I can confirm that this works just fine, I used to do it myself back when I used an ADSL modem last year.