Except the New York Times decided to go with sensationalism, rather than accuracy. From CNet:

As part of the deal, Verizon would agree not to selectively throttle Internet traffic through its pipes. That would not, however, apply to data traveling over its wireless network for mobile phones, the report says. http://news.cnet.com/8301-31021_3-20012703-260.html

Verizon is now contractually bound to not discriminate between content providers on it's backhaul network. However, they can discriminate between data types on their wireless network, which is actually a healthy thing for the wireless network. See: Quality of Service (QoS) routing.

Google sent out a denial via Twitter: "@NYTimes is wrong. We've not had any convos with VZN about paying for carriage of our traffic. We remain committed to an open internet."

There is no quicker way to stifle innovation than to allow mega corporations to control the means of production. This reminiscent of how Microsoft took over the software business and we are all now beholden to their inferior products. There is more to this than increased costs for internet service. The little start ups that came out of some kids dorm room will be a thing of the past if this goes through because they will never have a chance to compete against the big boys.

Google does= EVIL!! not LIVE!

That's pretty surprising if its true. I wouldn't have expected that from Google. Although they did cower to the Chinese.
Comcast on the other hand, well they have been behind this from the beginning.

The only possible upside is it will likely strengthen American hegemony. I guess that could be a bad thing too, though.

Put enough zeros on it and "evil" starts looking pretty sweet, eh, Google?

The reaction has begun:

http://www.savetheinternet.com/

Google claims that this deal isn't harming net neutrality, because it only applies to wireless and not to wires. I don't buy it. The eventual result will be the same to the user.

So, the Google-Verizon deal will mean a tiered Intarweb, unless it doesn't.

I'm glad I don't depend on the NYT and pundits to make sense of anything for me anymore.

FCC abandons efforts at net neutrality compromise
By JOELLE TESSLER, AP Technology Writer – 1 hr 46 mins ago

WASHINGTON – Federal regulators are abandoning efforts to negotiate a compromise on so-called "network neutrality" rules intended to ensure that phone and cable TV companies cannot discriminate against Internet traffic traveling over their broadband lines.

http://news.yahoo.com/s/ap/20100805/ap_on_hi_te/us_tec_fcc_net_neutrality_talks

We're from the federal govt and we're here to help..... big business... at the taxpayer's expense.