Earlier quoted context omitted.
I think the answer to most of these questions is, let the market decide. E.g. consider this: congestion during peak hours is bad now, but there is currently no penalty on an ISP for being slow. However if billing was based on bytes moved, for an ISP to underserve during times of demand means lost revenue. Thus ISPs would be incentivized to provide the best service.
With respect to the US, this answer is incomplete. The theory of letting the market decide only works when there is a free market. Most places I’ve lived has only had a single choice for ISP effectively making them monopolies.
Furthermore, even in places where you do have some sort of choice for internet service, it is almost certainly limited to choosing between a cable monopoly and a phone monopoly as your ISP.