Paranoia, pure and simple...
If ISPs were forced to purchase equipment that would ALLOW them to monitor every single packet of data that flows through their networks, I can categorically guarantee that 90% of them would go out of business overnight. Do you know how much equipment would be involved in monitoring the sheer amount of traffic going through a single ISP network, generated by thousands of customers? I can quite easily estimate it in the millions of pounds......where is that money going to come from, if such a claim was true?
What's the source of that article, anyway?