This is bad. First, it sets the precedent that ISPs can select which information gets to you the fastest, and, as appears to be the case here, raise prices if you want a plan that gets you this selective speed up. Imagine calling up Comcast to get a cable internet plan, but now you have to choose if you want a premium plan (that comes at a premium) that gets you YouTube at speeds that make it bearable or not. Secondly, it allows ISPs to exercise control over how information on the web is delivered to you -- if at all. This is plain dangerous, as control of information and knowledge is equivalent to control of the population that requires this knowledge in order to make decisions and self govern.
Is this really a tyrannical power grab by Verizon and Google? No, they just want to increase profits. However, it is a step in the wrong direction, especially by Google, who has been fighting for Net Neutrality for some time. The greatest aspect of the web is its openness. When ISPs can filter it as they want, we lose that freedom.