Theoretically ISPs could block SSH traffic, of-course that would cause a havoc from customers that actually use ssh and vpn.
They won't block any traffic, they will throttle it. In the case of VPN and encrypted traffic they will decide that to use it you need to pay extra. There will be internet tiers for things like VPN, Video, Gaming, that you have to buy extra like premium channels on cable TV. That is the strategy they really want. They charge you, they charge the content provider, they charge the middle man.
The point is: what is the current status of the technical capabilities for both sides of the camp? Is traffic segregation just a switch flip away for ISPs or do they have to upgrade their infrastructure? Anyone working on a TOR router, essentially using TOR passively without user interaction?
Any predictions on which team will win?
It would be pretty easy to throttle any number of traffic types with their current infrastructure. As for who will win, it will be a war going back and forth for as long as non-neutrality lasts. Each time someone comes up with a way around their system they will just find a way to block that, and sooner or later someone will come up with a way around that, and the war will escalate. The most tech savey will find ways around it, and the common man will pay through the nose for the war.
Encryption proponents can present an argument that encryption is protected under freedom of speech. I am free to say what is on my mind and i am also free to say utter gibberish that only one other person can understand.
Once net neutrality is gone your ISP has no requirements to give you access to free speech. They get to decide what you can say to who based on how much you are willing to pay. That is kind of the whole point.
I think despite their tech-illiteracy, it is possible to explain to them in layman's terms that no encryption = no privacy. I'm willing to bet a majority will be swayed into opposing any legislation that affects their privacy (or at least I hope they have the common sense and reasoning to see it this way).
At least in the US our commoners are so dumb that they accept that if you are doing nothing wrong you should have nothing to hide. I think that each person thinks that he will be able to keep his dirty laundry covered while getting a chance to peek at his neighbor's. All you seem to have to do is call into question an average American's morals and he will put his own head in a noose to prove he is holier then thou.