At reasonable cost bandwidth metering is fine.
Which will never happen. Nearly every ISP that has ever used a metered approach (at least for consumer connections) has had an obscenely low baseline cost, with huge overage charges. As long as the average household has access to only about 1.5 broadband ISPs, there's no competition to keep prices sane.
The infrastructure doesn't allow for every user to benefit from 10Mbs non stop. Instead it allows bursts. These bursts allow whatever content to be buffered so that it can eventually be viewed normally.
I'm not sure I follow your logic. Either the average data rate to the user is above the average bitrate of the content or it isn't. If it is, then even in the best case, bursting results in inconsistent latency for the network as a whole, because requesting a big chunk of content saturates the link for short periods of time, and nothing else can get through. If any of your network's users are trying to do any sort of interactive audio or video (e.g. A/V chat), having to share links with folks doing bursting video is very, very bad unless the routers are doing QoS smoothing. And if the network's average data rate is below the content's average bitrate, then you'll have to wait for a big chunk of the content to download before you start watching, which is a terrible user experience. There's no free lunch to be had from bursting. If anything, all the networking research papers have consistently demonstrated that bursting makes things worse on average, not better.
Or by bursting, are you really talking about oversubscription—selling several times as much bandwidth as you actually offer, under the assumption that most people won't be watching video all the time? If that's what you're talking about, then I already described the best way to do precisely that in my previous comment—providing fast data rates for a period of time, then throttling the connection to a more moderate rate, and allowing the user to specify that the boost be reserved for certain machines (e.g. not your VoD clients).
And oversubscription is precisely the reason that ISPs have always tried to push back against new technologies with greater bandwidth requirements. If given carte blanche license to limit users' bandwidth by charging by the gigabyte, they will always set prices high enough to stifle any bandwidth-consuming innovation to the maximum extent that they can. After all, why build out their infrastructure when they can charge ever-increasing amounts of money for the same amount of bandwidth? That's just the nature of for-profit businesses—particularly when they are monopolies or near-monopolies.
Fact and the matter is that charging per GB is fine. The only complainers are those who download lots of pirated content.
I'm complaining, and I don't download pirated content. Therefore, your premise is wrong. It isn't hard to burn through hundreds of gigabytes of data in a month just by watching entirely legal content sources like Amazon Prime, Netflix, etc. in the background while you work from home, or on weekends, or evenings, or whatever. And over time, the top quality tiers provided by those providers will continue to increase, because their customers demand better quality. In a pay-by-the-gigabyte rule, any customers with fast enough pipes would scream because their bandwidth bills would get too high, which means any future improvements in streaming video quality would be stillborn (except for codec improvements, of course, but those aren't free, either, because the user has to pay for the electricity to decode the more complex formats).
If the system changed to be charged per GB, routers and other devices would evolve to provide options to their owners.
There are no router options that can help. By the time the data reaches your router, even if your router drops the packets on the floor, you've already been billed for them. Therefore, if I wanted to ring up a few hundred gigabytes of traffic on your connection, all I would have to do is point a couple of machines from a fast, unmetered network at it for a few hours in the middle of the night every night, and you'd come home one day to a $200 bandwidth bill. The only way to "fix" that would be to put all the users behind carrier-grade NAT, and that brings with it a whole host of other problems.