<< yeah i heard that too, suppose to be like dsl
IMO that is just plain stupid, that was one of things why some people went with cable because it was just one price for service, i think they'll lose some new customers that way >>
No, it's actually a smart business move. The people who really want/need it will pay for the extra bandwidth, while the people who really don't need it or are still spoiled by how cheaply technology could be purchased a year ago will cancel their service. Broadband providers are now losing (or barely making money) by selling it so cheaply, so they'll do better with the pricing plans.
Average prices for Internet services are going up, but it's the best way for the companies to profit during (or for some to even survive) the slowdown. Most ISP's and broadband companies expanded way too quickly, with the focus shifting from developing a solid business model and product line to selling new technology like greedy crack dealers. Too many companies are bloated, over-expanded, making far less money (either the real kind or the "projected" money).
The companies that avoided investments in infrastructure and new products without first studying the real demand, and had business models that focused on a little more than just an IPO are the strongest companies today. The smart ones are raising prices on un- or semi-profitable product lines, and cutting those that are simply not going to be successful.
IMO it's going to take a lot longer for us to see "broadband in every home" than most people expected. The closed markets (only having a choice between cable through AT&T and DSL through a handful of providers over one companies lines) and a lack of standardization (cable versus dsl, adsl/sdsl, Copper Rocket or Westell modems) is inhibiting open competition, and companies are finding it more expensive (and sometimes unprofitable) to expand and offer service in smaller and less populated markets. It wouldn't surprise me if in a few years the government jumps in with some new regulations and a program similar to the REA of 1936, though.