Another solution is a world-wide effort to update infrastructure (better throughput, either hardware or software). But who's gonna pay for that? The last mile ISP's can't and won't and granted, it's not fair they should pay all of it.

Um, in the US, we're already paying for it. We have since the late 90's when congress passed huge tax breaks on to telcos to develop our 40Mbps connections - you have one of those don't you? The telco's promised us one years ago, I'm sure mine is just around the corner.