Telcos will have to invest in capacity where Google wants in order to get a good rating. Since Google is a de-facto monopoly, I think we'll see an Antitrust case soon.
If you look at the actual requirements they're talking about, they aren't that crazy. Even for HD video, they're talking > 2.5Mbps. So for really good quality, it's probably 5-6Mbps. I have 85Mbps FiOS at home, and I still sometimes have issues streaming Youtube videos. If my ISP can't even guarantee 10% of what I'm paying for over a fiber optic line, then yes, they need to be called out and publicly shamed.
Video is the thing that will finally get us faster IP networks, as it slowly replaces TV as the modern opiate of the masses. Even BitTorrent wasn't enough.