Oh, and on your point about universities, I think you will find that most (all?) of them already peer. UoA, which is far-and-away the largest university in the country, certainly peers at APE.
Help me out here. What incentives can I (as operator of a local exchange) now offer to a University to convince it that peering locally is a Good Idea when they have KAREN? At various times, I've offered the University Of Eastern Venezuela (*) peering for a) $XXX/monthly (**), and b) the cost of a piece of patch cord, so far without takers. I think I might have to pay them before the chicken/egg dichotomy gets resolved ("We'll peer if everyone else does"; Everyone Else says "We'll peer if they do".)... (*) Name changed to protect the innocent. (**) Amount obscured, but the number of digits is right.