Net Neutrality, Good for Innovation?

I ran across this article in the Register:
Father of internet warns against Net Neutrality

Robert Kahn, the most senior figure in the development of the internet, has delivered a strong warning against "Net Neutrality" legislation.
Speaking to an audience at the Computer History Museum in Mountain View, California at an event held in his honour, Kahn warned against legislation that inhibited experimentation and innovation where it was needed.
Kahn rejected the term "Net Neutrality", calling it "a slogan". He cautioned against dogmatic views of network architecture, saying the need for experimentation at the edges shouldn't come at the expense of improvements elsewhere in the network.
(Kahn gently reminded his audience that the internet was really about interconnecting networks, a point often lost today).
"If the goal is to encourage people to build new capabilities, then the party that takes the lead is probably only going to have it on their net to start with and it's not going to be on anyone else's net. You want to incentivize people to innovate, and they're going to innovate on their own nets or a few other nets,"
"I am totally opposed to mandating that nothing interesting can happen inside the net," he said.

The inherent problem is that if no one can profit from innovation then who can we count on to improve the internet?
Can we actually count on the government to provide the necessary improvements to the web to take it through this century?
Personally I can't think of anything the government has become involved in that turns out for the best, normally what you end up with is bloated and outdated bureaucracies that fail on too many levels to provide the essential services needed.
I think it would be wiser to come to some kind of compromise that allows an incentive to encourage investment in the web but at the same time can protect access to a degree through competition.
Forcing providers to unbundle internet services from their cable or telephone packages would be a start. That's where the real stifling of access is. In my opinion charges for internet service isn't the problem as much as how the providers do business. There is no need to have a land line phone in order to access DSL, nor is there a need for digital TV cable for cable access.
Make the providers offer stand alone high speed internet service and let the market decide the price.