"However, the major loss due to the "S" is the inability to offer any in-network value added services, that are offered by middle-boxes, such as caching, proxying, firewalling, parental control, etc." ... And that is bad? Oh right this is written from the carriers perspective. Personally I would prefer if the would stop DPI'ing all my traffic and doing 'value added' stuff. This is about resisting the dumb pipe scenario. I can think of a Canadian company (who Telefonica happen to be their largest customer) that would find their business model threatened by an all encrypted internet.
IMO, the carrier should have no place looking at the traffic I generate on their network. If I have to encrypt to guarantee it, then let's do it.