ISP's are responsible for the traffic their consumers request. The backbone providers are only responsible for taking that traffic and getting it to the POP of the ISP. If there is congestion there, it is at the request of the ISP consumers and thus the responsibility of the ISP to upgrade.
There is absolutely no difference in Netflix traffic if it comes from a server room sitting next to Hastings or a CND server sitting right next to the Comcast POP on Level 3's network. Either way, the same traffic is going to be going across that peering point to reach the consumers of Comcast that requested it. Not until a Comcast consumer request it will a single Netflix packet cross that peering point. Them implying anything different is a shear lie and yet another attempt at them trying to deflect blame.
The ISP is attempting to put their view of 'net neutrality' on this, effectively stating that all traffic is equal. Whether it be a simple site or a media content site. As a result, they'll let the peering point saturate because 'they can', and its not in their best interest to pay more for say.... Netflix traffic than say Yahoo/Google traffic.
When there's competition, you'll see this get resolved - one way or another. Eg. If AT&T has great Netflix traffic, and TimeWarner's peer is always saturated... you may find a lot of cord cutters/Netflix users heading towards AT&T.
To these companies, we're all just pawns in their chess game.
That article stinks, I've read it before and while it points out some things it also fails to mention the obvious.
At one point he says only Netflix is complaining and that Google is making headway Netflix isn't and can't understand why this is.
It's quite simple to understand, Netflix is a disruptive service while Google is not. Sure youtube has lots of videos and soon possibly pay content but it has yet to do so. The content they have is mostly user generated and not feature length. Netflix on the other hand has more the comparable content to provides VOD services. As much as they deny it cord cutters are using Netflix as part of their content consumption methods. That is partially why I believe they are making headroom (and still have issues), because they are not a threat to ISPs video services.