I don't know about "Google scale", but you definitely need to be able to peer to get the costs under control. That requires a certain level of investment (on the order of millions of dollars in hardware/datacenter costs), plus the human relationships to get the peering agreements done. Twitch absolutely had that in place, so it's not really fair to compare it to a hobby project and conclude the business model doesn't work.
There's absolutely a business, if you have license to good content that people want to see. If you don't, then you're in a horrible commodity market -- you're reselling bandwidth.
