I think Fox has the moral (relative) high ground here.
a majority of the consumers don't have a fast and reliable Internet connection. Once such connections become ubiquitous...
That's a big leap. Countries with high populations densities, such as those in Europe and the Far East, will have a much easier/cheaper time of building out the infrastructure for reliable high-speed internet to a vast majority of their population. Here in the US, however, it's a lot more expensive. Simply hand-waving the "once such connections become ubiquitous" ignores the cost of installing that infrastructure, and the time required to extend it to enough households.
Besides, a 1080p movie is going to suck a lot of bandwidth, and I'm guessing most people won't want to pay for a connection fast enough when they can save a few bucks with a slower connection. Not to mention the whole throttling/bandwidth cap issue.
A fail-safe circuit will destroy others. -- Klipstein