Looks like after Time Warner Cable couldn't put a bandwidth cap in, they hired Nemertes to try and back up their claims. If the increased usage brought so many additional costs onboard, then why is it that ISP's operating costs are flat, not increasing?
There is a real physical barrier to the Internet: their are only so many addresses that can exist. But that mark has been in existence since the Internet was created, and work to change that has been ongoing for a decade.
Really, the problem is that more capacity needs added. I just wish someone would run an piece on how TWC and its ilk are just buying crap research like this though.