People want/need information, Lots of it and lots of different kinds of it. They don't/won't wait on it. Packet loose limits the growth of the Internet by reducing the desire to use the Internet to move different kinds of information. The better it works the more we will all use it, until we get tired of waiting for it. Then we back off and: place a phone call, send a fax, turn on the radio, go to the library or the post office, turn on the TV, read a magazine or newspaper, Install a lease line, etc.
ISPs that provides better quality of service will attract content providers and content consumers that want more from the net. As consumers become aware of the differences in service, low performance ISPs will decline in popularity for demanding consumers. Try and find a customer that says they like to wait 30 seconds for a web page. Several of the dialup nationwide systems are 30 second slow. As customers of slow ISPs see faster response from higher quality of service ISPs they will switch or continue to wait. As new solutions are made available to consumers like personal video conferencing, consumers will tend to higher performance ISPs.
Even if a carrier delivers ever packet they receive to the Gigaswitch at an exchange point the customer doesn't care where the packet was lost. The increase in private crossconnects sends a message to the exchange points, while giving the exchange point some breathing room.
In summation packet loose is here to stay. The amount will be determined by the free market system.
P.S. If someone can prove they have better access than what I am buying now I'll plan on switching. AS1702