People still believe this? Google pays their ISP. I pay my ISP. Google does not pay my ISP. Why is my ISP's response to the amount of traffic I use demanding to bill someone other than me?

To be clear, Google was doing this out of self-interest. Paying user ISPs for access to those users is not a cost they want to pay. But it's the same as any other protection racket. A local shopkeeper has personal reasons to not want to pay off the mob, but that doesn't mean their position is wrong.