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"In ISPF syntax, the ampersand (&) is used primarily as a prefix to define and reference dialog variables.".
Dynamic system variable substitution in ISPF interception of the command sent by RSE using RSE ISPF TSO gateway is commonly valid.
The escape of & symbol is the requirement imposed by ISPF rule, not RSE.
For that, it's reasonable and safer for user to explicitly escape the symbol & when it is meant to in the command and argument sent to RSED for execution to avoid skipping wrongly the intended dynamic predefined variable substitution.
If you would like to forcefully and automatically &-escape in all cases for the commands and args sent to IDz/RSE host, then (RSE) host could consider introducing an option to do that. The option could be set per IDz client preference, or at IDz/RSE host scope that is applicable for all connections to this RSE/IDz host.
Please let me know what you think.