> True. Though I imagine that if all the networks started to enforce draconian traffic rules, there would be an opportunity for smaller, local startups (or a large well funded one) to offer an unrestricted Internet. I'm thinking Sir Richard Branson could start an ISP in that niche, Virgin Internet...

Not if they use the infrastructure of the larger companies to connect to their customers. Then the larger companies end up throttling the smaller company (and hence all of their clients)