Yes, the physical wires running to your home is the cost-prohibitive thing that is stopping competitors from entering the market (i.e. running a second set of wires to your home).
The ISP should be responsible for your service to the rest of the internet, since there's many ways you can manage that side of the network. If an ISP wants to offer a non-net-neutral plan, they can, but there should be little barrier preventing another ISP from entering and competing with a net-neutral plan.
This is very similar to the way the UK currently does it[1]. It always baffles me that the FCC thinks that it's in uncharted waters. This sort of thing has been hashed out and is working well in other infrastructures.
The ISP should be responsible for your service to the rest of the internet, since there's many ways you can manage that side of the network. If an ISP wants to offer a non-net-neutral plan, they can, but there should be little barrier preventing another ISP from entering and competing with a net-neutral plan.
This is very similar to the way the UK currently does it[1]. It always baffles me that the FCC thinks that it's in uncharted waters. This sort of thing has been hashed out and is working well in other infrastructures.
[1]: http://arstechnica.com/tech-policy/2010/03/uk-regulators-off...