Of course, it does mean that I cannot download, say, a Linux ISO via torrent... now that is throwing out the baby with the bath water.
(That said, AT&T did stop offering Usenet last year, supposedly because there was too much illegal content.)
But it is completely unreasonable. If they don't have enough bandwidth, they can sell me a plan with a limit - then _I_ will decide what to use that plan for (including, but not limited too, porn, terrorist activities and peer to peer filesharing).
What the providers wont admit is that they are selling a commodity, which (in the area of wireless communication) is completely fungible -- therefore they get to charge no more than commodity prices, while everybody else gets to get rich of their services.
This proposal if sponsored by FCC or US Congress would give carte blanche to the telcos to do whatever they want on wireless, in particular 3G/4G. Google is not representative of the users (present or future) of those services.
Most of the people on the highway on my way to work are speeding. That doesn't mean the government should allow different cars to go different speeds depending how much the manufacturer pays.
If you join any community, try to learn its rules first. And don't hide behind the anonymity of down-voting.
Edit 1: rephrasing.
Edit 2: lowenskind comment was in the negative side when I wrote this, requiring at least 2 down-voting accounts.
Google betrayed the trust of everyone who believed "Don't do evil". Full stop. How ISPs dealt with illegal traffic on their networks has nothing to do with any of this.