The scandal here is not the peering, but rather the fact that instead of being mutual (each side foots its own half of the bill), the ISP's are using their customers as leverage to get paid for it.
No, the scandal here is that the asymmetric arrangement isnt presented honestly, like you didnt do right here.
Settlement free peering has never existed when one side sends significantly more traffic than the other side. Period. Its not something that happens. You can call it extortion if you want, never the less thats not how the business operates now or has ever operated in the past.
In this case the peering agreement need to be asymmetric (one side pays the other) because the bandwidth simply isnt even close to symmetric, but Level 3 (the ISP Netflix uses) does not want to pay the difference. Level 3 approached Netflix with a sweetheart deal, got their business, but now don't want to pay other backbones for the consequences of being Netflix's ISP.
Now given that Netflix itself is saving money because Level 3 isnt charging them a traditional price for the amount of bandwidth that they push, and Level 3 gets away with this by not paying other backbone providers a traditional price for such asymmetric peering, then it only seems natural that Neflix takes that money they are saving using their cheapskate ISP and uses some of it to route around the issues that choosing a cheapskate ISP has caused them.
Decisions have consequences.