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I get your drift tape and you make some good points. I'm all for a free market and competition, it generally helps improve services across the board.
The problem here, in a narrower sense, seems to be that the 'market' now will have control over the levers of internet content, in this case how they see fit to dole out bandwith on whatever websites and streaming services that are out there. This significantly narrows the playing field. It provides a huge advantage to big money sites over startups or non-commercial content on the net. The big ISP providers will first and foremost give preference to what's popular on the net hence more advertising dollars and profits. Good on them.
Take your water metaphor, that you'd want to control how much water flows to which part of your home. Problem is, it's not you that's deciding where the water flows, but in this case would be the water company. They choose to pipe in 5x the water you need in the washroom, but your shower is at a trickle. Same thing with your router analogy, in which case the consumer can adjust bandwith 'priorities' on their incoming net. Again, removing net neutrality doesn't give you these choices, but to the ISP providers.
It's like having control of the soda fountain at a fast food chain. You get a kickback from the Pepsi guy so you pipe through watered-down Coca Cola in the machines. Or say it's out of service. Then proclaim 'See, the customers prefer Pepsi over Coke, the numbers prove it.'
It is boosting the notion of groupthink, and at once narrowing content on the net. We're putting mega corporations and advertising companies in charge of not only what they're gonna pipe through but how they're going to deliver that content. Which video you can stream and which is broken or lagging. In my view net neutrality wasn't some liberal/ Obama overreach or achievement that serves the government, or really anybody. It was an attempt to create a sort of Constitution for the net, if you will, with inalienable rights to keep fundamental aspects of the net free and unfettered.
The basic idea of it doesn't sit well with me, sorry.
Was this a significant problem before this rule went into effect? No there were some minor issues but I say that competition would have fixed it.