I did not express any view about how ISPs should and should not behave.
By the way, I know, I brought it up because I think it is the much more important point, and the only real solution to the net neutrality problem. You don't have to force the ISPs to do anything as the FCC if they force competition. The only reason they can think about being "non-neutral" is because consumers don't have any other real choice, in all but a handful of markets in the US.
I think this:
I use the analogy that the FCC requires cable companies to supply their subscriber with cable cards. so their subscriber can view the programs they subscribe to without being locked into the only (and very often inferior) equipments the cable company rent out.
Is a perfect example of why this kind of regulation is terrible. Look at how well CableCard has worked! It's a horrible system, designed by and for the cable companies, and further used to exclude new entrants to the market.
In other words, you can't offer pay television service in a market unless CableLabs lets you, and you have huge upfront amounts of money to pay for "compliance testing" and "certification". You can't build systems that use their CableCards unless you invest so much money and effort and the systems they force you to build are customer hostile, that
everyone (including companies as small as Microsoft) can't seem to play in the game and gave up. Why don't we have a million brands of DVRs at every consumer electronics shop, all competing for the best features?
CableCard was basically designed to ensure this would never work.
The problem with this is what we need to get what we want is lots of competing service providers, each with good libraries of content, and competing with each other by offering new pricing and features like integration with many different platforms (hopefully, including software like MC). We need lots of little companies like Netflix all competing to provide the best service. What forcing them to adhere to complex regulations and a government mandated "API" minimum bar would do?
It would ensure that only Apple, Google, and Netflix get to play in the game, and they can do everything in their power to subvert the system and make it cruddy, just like CableCard, so that it eventually fails and no consumers choose it anyway. We want lower barriers to entry for service providers on the network, not higher ones.
CableCard is a
great real-world example of why that idea probably wouldn't work well.