This is a good point, but for a different reason: IIRC, Netflix is paying Level3 for connectivity. If Netflix pays Verizon for direct connectivity, Netflix still pays someone for bandwidth, and L3 loses their cut.

and Verizon wrote in their post that they "working" on this: "we are working aggressively with Netflix to establish new, direct connections from Netflix to Verizon’s network." But "working" could mean: "waiting for Netflix to pay for it".

Netflix already paid Verizon's ransom and now Verizon is building connects to Netflix but such connections take time to install. Level 3 is arguing over old news at this point, but they're trying to set a precedent to prevent other ISPs from trying the same thing.