> A reduction in the number of participating routers would lower latency (yay for LoL players), but it would also lower the number of customers they could support.

This is because ISPs oversell their networks. That's great and it makes sense... as long as they can get away with it. But when services like online gaming and netflix gain popularity, the ISP business model is insufficient for delivering quality connections.

Also, nice "pipe dream" pun in the second paragraph. ;)