Where do you expect the bandwidth to come from? Especially away from cities. It does not exists at this time. To add additional bandwidth costs far more than you'd ever imagine. One good idea would be to allow the App and have it not work on anything besides wifi.
I was referring the the subject at hand wireless data bandwidth on ATT's network(Iphone). It doesn't just appear from thin air. There is for now and probably much longer extreme difficulty and great cost in bringing bandwidth to cell sites outside cities. Mobile broadband isn't for streaming as with your cable or DSL might be. There is only so much to go around and hogging it directly effects others. Cable broadband I can't agree with you more, it's greed not a lack of bandwidth.
My bad. I read the reply from my posts list (which doesn't show the post you were replying to) and I was most recently chatting about TWC backing off the bandwidth caps. Reading it again, it totally makes sense.
While my dataconnect plan has a 5GB limit, I read my iPhone TOS and it doesn't say anything about limits. A high bandwidth consuming app that runs from the phone could easily be problematic for AT&T. And even some of Apple's own apps, like some app store downloads can only (or could only) be done over Wi-Fi or installed when docked.
The alternative would be for AT&T to levy the 5GB limit that they have on tethering plans (like Blackberry w/ tethering) or dataconnect plans on the iPhone data plan.