One solution could be to have geographically distributed test points. Any connection to be able to claim a certain speed has to be able to get that speed to those test points. And the test points are legally required to connect to anyone that can bring fiber to their doorstep. If someone plays hardball with peering there will then always be the backup option of routing traffic through one of the test points.
Idk, just throwing out ideas here.
All I'm getting from this is that it's a good idea to label ISPs utilities and bring the hammer down if they're being knobheads about it.
The solution that was developed in the Netflix-Comcast fight over a decade ago is content distribution. Instead of trying to build out extra capacity in every possible link, you shorten the path and thus reduce the number of contended links involved in each interaction. This scales much better, but it has two major problems: the first is rightsholders and their obnoxious anti-piracy restrictions, and the second is good old jurisdictional friction and economic misalignment. Somebody has to own the physical servers in all the myriad locations that keep the content closer to the consumer. If the ISP owns them, then they naturally want to exploit them. If Netflix owns them, they naturally don't want to serve their competitors. If a third party owns them, you address those two problems (potentially) but add new ones around liability, non-disclosure, competitiveness, etc.
If regulation is going to be useful here, it needs to focus on opening up opportunities to serve the unsexy middle of the infrastructure puzzle and not just the most visible parts that consumers/voters usually interact with. Also, "Netflix" needs to be understood as just a stand-in for any high-bandwidth Internet service, as the landscape is constantly changing.
