MB/Mb and more
Yes, people do not understand the MB/Mb relationship/difference. It doesnt help though when the tech support numpties dont know either (I have been told by many that I'd be getting an X Megabyte connection). But it's generaly more of an issue of the low level of inteligence of the general population than misleading by the ISPs.
However, most broadband speeds are significantly lower than the 'up to' rate quoted, which should be stopped. I beleive that ofcom should force the ISPs to charge for the rate the customer gets. So, say they charge £16/mo for "up to 8Mb", if you only receive 2Mb, you should be charged £4/mo. Also, you should be able to request a lower speed, and pay that. I know that prices would go up, but it's fairer to those paying the same for a 512k connection as others pay for an 8M connection.
They should also be forced to either remove the unlimited lable, or make it realy unlimited. They still have a contention ratio, so users cant complain if connected at 8Mbits and only getting 1/50 of that sometimes, but calling it unlimited when theres an FUP is wrong. The best FUP I've seen is on Be. As far as I know they have never had to enforce it, and I know that I have spent an entire month downloading and uploading for more than 90% of the time on an 18Mb connection to/from newsgroups.
I also agree with giving customers the option to pay for a FTTH connection as a simple £/mile calculation. It would work out well for me, as I am less than a mile from the exchange. However, those in remote areas would still be screwed, although there BT may still be able to make money by doing FTTC then charging for a fiber link from there.
Overall, given the rise in Broadband, I do think that BT should be forced to change their policy. Currently they do not have to provide a line suitable for anything more than voice or 28.8K modem, which is just not good enough.