[xxchan]

It's not stupid at all. By giving into the racket, Netflix demonstrated that it's not a technical issue at all, so that argument no longer flies. It's clear that the ISPs are capable of supporting the service, they just don't want to.

[higherpurpose]

Well not really. They can just claim that without being paid extra to do so, it wouldn't be cost-effective for them or whatever. I mean that's their public argument anyway - that these services cost them too much and they need to pay up.