Nobody can compete with Netflix because it's nigh impossible to match the breadth of their content licensing, and it will take an enormous marketing investment to displace their brand. (Even Amazon and Google have weaker brands to the extent that they compete with Netflix.)

"Fast lane deals" would/will be an expense for Netflix and give smaller competitors a slight advantage in that respect (if they can get the content and publicity, and improve the experience for users).

If ISPs degrade their services to the point that it's impossible to deliver streaming video without paying fast-lane protection money, that's something that could be resolved directly by lawmakers. E.g., prohibit marketing "up to 100 Mbit" if users can't even stream 2 Mbit video reliably. They could call the service "1 Mbit plus Netflix" or similar. This wouldn't grant any new authority to unelected FCC censors.