Customers do not expect the world for free and if you want to compare it to Frame Relay (A serice that ISP's like yourself sell as 'carrier grade') - that is just another overpriced, unreliable piece of you know what - but one which comes with a *marketing* edge - It's expensive, comes with a pokey SLA and the 'feel good' aspect that if Telecom / Telstra is screwing you at every bill - it must be the bee's knee's. Not everyone subscribed to NZNOG runs an ISP - some of us are consumers of Internet services and many of us advise our customers who are consumers of Internet services. I, as I'm sure many do, take note of which ISP's have a 'don't give a damn, the customer's a neccessary a-hole I have to put up with' and we consult our clients accordingly. Conversely the ISP's that deliver good service at the right price and all elements of the organsiation are geared towards serving the customer (not just the telesales people) are the ones who will succeed because the CEO / CFO / MD etc in any company isn't interested in the cynical opinions of a few NOC people -(s)he is only interested in commercial aims and ends.
Actually, I think it's the other way around.
The reason NZ has 3rd rate broadband, is customers expect the world for free.
You can't expect good uptimes and run your business which requires high availability internet on a $39.95 DSL account.
I agree with everything Dean said, and I bet I am not the only one.