I will add a little more detail. When Netflix starts sending enough data through standard connections that they start to cripple the internet, they will set up peering agreements and run direct line to the front door of every ISP. If you don't think that is possible look at Google who has peering agreements with everyone except tier 1. We will be fine, the sky isn't falling and no, this is not the end of the world. Not even close.
Peering reduces load on the backbone, but not on the middle or last mile which is where I think congestion is predicted to appear. Only the broadband ISPs can upgrade there.
I will add a little more detail. When Netflix starts sending enough data through standard connections that they start to cripple the internet, they will set up peering agreements and run direct line to the front door of every ISP. If you don't think that is possible look at Google who has peering agreements with everyone except tier 1. We will be fine, the sky isn't falling and no, this is not the end of the world. Not even close.