the Internet Backbone

Some nits.

Here are my first thoughts on a tiered model, with attributes of each tier.

Top level (Tier 1):
    -- provide transit as their principal business

principal IP business (some people provide voice services or do other
things).

    -- have at least some default-free routers

Span at least one continent with default-free routers. Are able to
provide customers with default free routing as an option.

    -- have connectivity at >1 geographically separated major exchange

Yes. And span these with default free routers (ie: taking full
routing at two routers and defaulting in the middle doesn't count).

    -- need special measures to deal with BGP scaling issues inside
       their AS (or multiple AS) such as confederations, clusters, etc.

or multiple AS to deal with scaling... but if a really hefty router
comes along or we ever are able inject AS paths into the IGP, this no
longer applies.

How about connection speed? At least a DS3 backbone? A redundant
backbone (no single circuit failure can partition the provider)?

Can we squeeze in 1.5:

    -- provide transit as their principal business
    -- have at least some default-free routers
    -- have connectivity at >1 geographically separated major exchange
    -- do not have a default free backbone
    -- maybe cannot provide full routing to all but a few customers
    -- maybe not redundant DS3s

Nobody in particular in mind here.

2nd Level
    -- provide transit within a geographic area
    -- may have default-free routers
    -- limit operations to a geographic area; may connect to multiple
       exchanges within that area

Connection speed? Is Nearnet (mostly New England) circa 1994
equivalent to some small provider with two T1s and a bunch of routers
in a limited geographic region? Again, having an providing full
routing is a big factor too.