But I also buy the argument that regulation can disincentivize competition. At the same hand-wavy level as above, it's easy to imagine regulations that would make an ISP say "fine, if we can't charge more for an improved product, we'll just focus on cutting our costs... like our customer service costs".
So, is it more important to protect innovation in startups (a few of which are transformative, but the overwhelming majority of which have no social value), or to protect innovation in connectivity (which everyone uses, so benefits everyone)? I dunno.
Of course, all the foregoing assumes that there current exists meaningful competitive pressure in the ISP space. That doesn't appear to be the case very often (both in U.S. markets and elsewhere). I think this is a far bigger issue than net neutrality will be, in practice.