Let's say we need to drop packets from my lower tier. We'd prefer to keep a good experience for those customers if possible, so it would arguably be preferable to drop lower utility packets rather than grind everyone in that tier to a halt.
If 90% of the packets were coming from streaming video, the ISP could drop them all without affecting that tier's ability to access their bank accounts.
That is really the crux of the issue, because it is very close to reality.
But setting aside the question of whether anybody would sign up for such a shitty ISP, you don't suddenly need to throw out 90% of a customer's traffic unless you're suddenly hit by a DDoS that you can't mitigate in any saner fashion. Congestion that bad will build gradually, and you'll have plenty of RTTs to send congestion signals to your customers. If a customer is running an application that is so unresponsive to congestion signals that they end up using 10x the bandwidth your backhaul has available for them, then that customer can have no reasonable expectation that any other applications remain usable. Any sane video streaming service would have lowered the resolution and then dropped the connection entirely as the congestion developed and packet loss increased.
Ignoring even that, you still haven't come up with a situation that requires non-neutral traffic management. AQMs like Stochastic Fair BLUE and Cake will automatically identify the unresponsive flow(s) and probabilistically drop those packets at whatever rate is necessary to alleviate the congestion, converging on 100% drop probability as the flow continues to behave like a DoS, while well-behaved TCP-like flows are minimally impacted (aside from a degree of congestion signalling necessary to keep their total bandwidth usage within the limit of what's available). SFB and Cake don't care about where the traffic is going other than to identify what flow it belongs to. They don't care what kind of traffic it is, they just care about how it behaves. They're neutral algorithms, and they provide a reasonable solution to the unreasonable challenge you've posed.
The ISP cannot fully rely on all parties behaving well, unfortunately. The question is: Can the ISP drop packets from this low priced tier that it knows are likely video streaming, even well behaved video streaming, over other packets? Is that acceptable, or "legalized extortion"?
Obviously it would selectively drop DOS traffic first, as you mentioned, but we are past that point.
Such a policy is not necessary for the ISP to deliver good quality of service. Content-neutral traffic management is good enough, and often better than poorly-designed discriminatory traffic management policies. There's no real upside to permitting ISPs to engage in this kind of discrimination.
What you aren't allowed to do is treat traffic of the same variety differently depending on whether the endpoint paid you money.
The people being extorted aren't even your customers they are people who want to do business with your customers.
That's certainly not what it's about. Business charge people all of the time based on what they think the customer will pay, regardless of what it costs them (see most "limited edition" versions of games, DVDs, etc).
The reason net neutrality is important is because many ISPs are effectively monopolies so there is no competition to keep them in check.
in short: it's against the internet itself...
is the internet biased?
I think the issue is rather like a court case: sure, there are 2 litigants, but in the end one is determined to be "correct" and the other loses...
if a famous data scientist publishes a research paper and I stand up naked on my desk and shout "peanut butter sandwiches!" at the top of my lungs, the peer review committee has no obligation to include my response in the process surrounding the review of said paper.
If a doctor or car mechanic gives a diagnosis in the field of their expertise, their opinion will be given more weight than if I ask a passerby their opinion on my illness or automobile.... i could go on and on making examples where 2 or more "sides" may appear wishing representation and where they don't necessarily warrant/merit it.
one has no obligation to represent litigants as holding an equal stature in validity, it's the a-priori presumption of the possibility of such that allows people to initially listen and nod, before one makes them aware of how bat-poo crazy one is, lol
This is definitely the most unique argument I've heard in favor of net neutrality
What if someone wants to start an ISP, and charge less for a lower QoS band? Is that legalized extortion?
(Not to say it would be a good idea, I agree that it is a slippery slope)