I think you make good points. But by having additional compliance rules, it becomes slightly harder to compete with the ISP.

This argument, therefore, taken to a natural conclusion gives up on competition at the ISP level in favor of competition at the data level.

I think the counter argument is that by allowing for way more competition at the ISP level - there is no data level competition problem (the problem becomes how to allow for more ISP competition).

This side of the argument would love to see all users have access to 5 or more ISP choices where today more than 25% have access to 2 or less.