> This is quite literally a "have a cake and eat it too" type of situation.

How is NetFlix any different? They make the choice to lower the cost to deliver their service by choosing a CDN with inadequate existing peering relationships with ISPs. They also severely limit client side functionality because it makes their service cheaper/easier to support on a wide range of devices. NetFlix collects this data about ISP performance so why don't they say 'oh hey sorry ISP X user. We can't let you sign up because you'll have poor performance!' -- instead they happily take the money.

ISPs aren't stopping people from signing up for Netflix because they won't allow the maximum performance subscribers' service plans specify. Accepting pay for service isn't dishonest. Accepting pay for service you don't provide is.

Netflix has Internet Connection Speed Recommendations (https://help.netflix.com/en/node/306). ISPs offer service plans that cost more for higher maximum speeds. Is it Netflix's responsibility to ensure particular subscribers receive particular qualities of content, without regard for the contents' source qualities, the subscriber's bandwidth, the policies of their ISP, or any other range of factors in the last mile? Netflix is offering content, not quality. It doesn't sell differently priced subscriptions based on "maximum video quality", it offers a range of bitrates at a flat rate and sends the one that allows the best experience for your bandwidth.

Although, that's sort of the issue, isn't it? It's not "your" bandwidth that determines that now. It's not the plan you're paying your ISP for that's the limiting factor, it's the ISPs particular traffic shaping policies. Netflix isn't slowing its traffic down or decreasing video quality prejudicially based on your ISP or internet plan. It's the opposite, but they're being asked to pay, rightfully or not, so that some of their subscribers won't have their bandwidth throttled by their own ISPs.