"...Netflix tries to bully their way in for free co-location *AND* make the ISP pay to haul the traffic."
Agreed. My working assumption is that Netflix are being manipulative. I'll grant that the USA and elsewhere are plagued with subpar ISPs, but that doesn't really change the apparent fact that Netflix is manipulting the anger of the unwashed masses through a campaign of misinformation.
Thankfully my ISP is recently stellar (fiber, 175 Mbps), and I've no use for the brain Pablum on offer from Netflix. So I'm not directly involved in this mud slinging festival of deception.