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DSL has more of an advantage over this. Because cable-modem users generally share a network loop that runs through a neighborhood, adding users means lowering performance in many instances. ADSL provides a dedicated connection from each user back to the DSLAM, meaning that users won't see a performance decrease as new users are added -- until the total number of users begins to saturate the single, high-speed connection to the Internet. At that point, an upgrade by the service provider can provide additional performance for all the users connected to the DSLAM. This doesn't exempt DSL users from running servers though.
The upload bandwidth use could be regulated with a cap, and a few dollars for extra MB over the cap. But still, there will be complaints about the limit. Some would want it removed.
There is no method to make everyone happy. You are just going to have to live with what you have...128 isn't all that bad for gaming, because pings are considerably lower than that of 56K, and casual uploading.