Yes, they do. That's exactly what they want. A dumb pipe that transports their bits and nothing more.
I'm omitting your list about dumb pipes, as nothing you write has anything to do with dumb pipes and is all completely wrong.
> Personally, I'd like a dumb pipe only as far as the nearest major datacenter, and then quite a lot of smarts in that datacenter. I don't just want a raw connection to a major bandwidth provider, though.
Hate to disappoint you, but there are no smarts in any ISP datacenter. It's just a big router and some interconnects. Raw bandwidth is all you get, if you are lucky.
> See also the last paragraph of my previous reply: I'd be in favor of separating out the "dumb pipe" as a utility, and then having ISPs operate independently from that. I think that would solve the majority of the problems.
It's not that simple, there are a lot of implementation details that matter. Do you want local loop unbundling, bitstream access or only resale?