Why would netflix and youtube agree to that? What's in it for them? The way it's described seems like Verizon has no recourse if they just refuse to sign such an agreement with Verizon.
Meh - when it's "free", the customers are less "annoyed"
And if you're viewing on your phone, you probably can't tell much of a difference between 480 and 1080 (it's there, but for most things is totally unimportant on such a small screen)