That's a terrible argument. Would you say the same if they only allowed 100kb of data transfer before switching to a throttled service (@ 1/100th the original s

That's a terrible argument. Would you say the same if they only allowed 100kb of data transfer before switching to a throttled service (@ 1/100th the original speed)? What you are doing is allowing them to draw a line in the sand and then standing by it and saying it is reasonable. This line should not exist and throttling should only occur when absolutely necessary (when the network is over-saturated). Even then, there should be reasonable expectations of them to not over-subscribe the network based on statistical projections of network use.