I think the 2 phrases "considering the adoption of an advertising model that does not require the tracking of web surfers from inside ISPs." and "the company says it intends to move forward with its deep packet inspection technology" mean they are now looking toward something along the lines of seatrotter's comment.

But how can we trust any company that tries this now after the brazen mis-selling of Phorm/Webwise as an anti-phishing tool, and various other statements trying to hide the real risks of what they intend to do and the lack of protection afforded to customers in their data being analysed/mined/off-shored.

The EU should slap UK.Gov upside the head over their inaction so far, and such systems with flagrant attempts to bypass informed consent, or claim public use rights over web data, should be killed off ASAP.