The problem here is, what if you want to use a new competitor to Netflix, perhaps one with more content and a snappier UI? But you can't because they didn't pay

The problem here is, what if you want to use a new competitor to Netflix, perhaps one with more content and a snappier UI? But you can't because they didn't pay-off your ISP? (In addition to them paying their own ISP, and you paying your ISP. And then your ISP not doing its job because no kick-backs.) I'm actually OK with the idea of caps, as long as there is competition so they are reasonably high caps. Some overselling / bursty-ness of consumer ISPs is reasonable IMHO, and communicating that with caps is reasonably simple.