This is just one of the many fights surrounding net neutrality. We desperately need to break up ISP monopolies and enact strict net neutrality regulation and bandwidth (even latency/routing) guarantees. The idea that a single ISP is in a position to charge both YouTube and its customers is bizarre. By any basic reasoning, an ISP that doesn't enable access to YouTube should be out of customers within a few months. Tha…
Providing internet service requires a lot of physical infrastructure, e.g. cables run to every home, all the attendant routing and switching gear, a fleet of trucks and maintenance workers available 24/7, etc. Right now the ISPs (phone and/or cable company) provides this. Are you saying that the physical infrastructure should be separated from the ISP function? Who owns the physical infrastructure then?
Customers would then be able to pick and choose their carrier and carriers would be forced to compete based upon service. Not happy with ISP A? Call up ISP B, sign up, and they'll put in a ticket to a tech at the facility to patch you over from ISP A to ISP B instead.
I realize, of course, that this a fantasy that will never happen.