Well I have to say... one one hand I think it's horrible... on the other at this time I would never use such bandwidth, so I say let the people clogging the pipes pay more. Now that with the caveat that the extra fees should goto expansion of bandwidth.
I still think net neutrality is the correct way.
The reason I think it's a bad idea is because true competition does not exist. In most area's, you get one, maybe two providers if you are lucky. This doesn't leave a whole lot of choices, so they can do what they like.
In this case, $1 per Gigabyte is way over the going rate for bandwidth from the highly competitive hosting market.
I don't have a problem with them looking into this, but unless they are actually in line with competitive pricing, I do have a problem with what they are charging.