The person you’re replying to was admittedly shortening the argument somewhat, so let’s expand it for you and anyone else that cares. You misread some fairly crucial points.
ISPs care about something called “transit”. Transit is when you’re given a packet by someone that you connect to directly, but you don’t have a direct path to the destination, and need to go through some other entity to get there, such as another ISP. When you pay them for that (usually as a metered charge, or simply by size of the interconnect), this is called “buying transit”. When you connect that way, though, you can also agree with the other side that it’s mutually beneficial to just interconnect. After all, you might be giving them paths to destination they can’t get to directly. When you interconnect without payment (either way! There commonly are interconnects where only one side pays), that’s called peering.
Internet ISPs exist on something called tiers. A tier 1, by actual definition, is an ISP that doesn’t pay anyone for transit because they peer with anyone. ISPs that only pay tier 1s for transit and peer with everyone they connect to that isn’t a tier 1 are called tier 2s, and so on.
Transit is expensive so ISPs strive to be at a high tier and push as much data via peerings as possible.
The best thing, of course, is when the ISP doesn’t have to go through an interconnect at all and can simply complete the full path on its own backbone, which is just smart use of assets you own.
Netflix sends ISPs a lot of data. This can make the transit an ISP uses to get to Netflix quite expensive. Netflix also offers ISPs caches, which means that Netflix is telling ISPs that they are happy to take a box with a petabyte of storage, put their most popular programming on it, meet the ISP at some exchange point, and put an interface on that cache onto the ISPs network. Now the ISP can just use its backbone to serve Netflix streams available via that cache.
Some ISPs have documented behavior of refusing to put a cache onto their network, instead asking Netflix to subvert or fund the transit cost. They don’t care about how good their customer’s Netflix experience is, they want to generate revenue. This is arguably greedy.
ISPs also have a last mile issue. Backbone networks are typically quite good in the US, but there are capacity problems where the ISP meets actual customers. Some ISPs have a documented history of taking federal grants given to improve last mile networks and just not making those actual investments. This was particularly prevalent in the 2000s. Instead, they simply offer lower speeds or introduce data caps that let them throttle end users after certain thresholds, which reduces the overall load on their last mile networks