Right, and nn is an attempt to apply this principle to the internet via regulation.
The ISP that is built to support 40 users of bursty network use should not be forced to service streaming users that saturate the bandwidth to the detriment of all other paying customers.
Agreed, and they aren't. ISPs are free to charge their customers for every byte of bandwidth that they consume. If I download 10 times as much data as my neighbor no regulation prevents my ISP from charging me 10 times more.
A business should have the ability to say no to customers whose patronage harms the business. The big content streamers like NN because it forces the ISP to carry content even if it harms the other paying customers.
It appears that you're viewing Netflix as the customer.
Netflix has to pay for the bandwidth to get their movies from their servers onto the backbone network - and they do. I'm sure they have massive contracts with one or more fiber providers. But Netflix isn't a customer of the ISPs we're talking about here (Comcast, AT&T, Verizon, etc.).
The ISPs' customers are you, me and all of the other end users. When we request that a movie be streamed we should also expect to pay for the bandwidth that movie consumes.
Netflix is paying their network provider to get the movie into 'the internet' and we're paying our ISP to get it from the net into our home.
People that want to stream should pay for the capacity.
Again, there's nothing in nn that prevents the ISPs from charging their customers more if they stream more data into their homes.
There is no incentive to build that quality of traffic separation with NN in place. Everyone is forced to swim in the toilet together.
Actually, no. Even with nn rules in place ISPs are allowed to treat different types of traffic differently for purposes of performance and network tuning - and they do it today.
All nn says is they can't treat the exact same type of traffic differently depending on who sent it.
In other words, they can send streaming data over a different path with a different priority than email or normal web traffic, they just can't charge me more for streaming a movie from Netflix than for streaming that same movie from Amazon Prime (assuming they use the same bandwidth).