Nothing in the proposed legislation prevents you from peering with multiple ISPs to get closer to your customers. This was happening before Verizon won its suit against the FCC.

There are a lot of great real world examples. There are several streaming services (YouTube) that have a global private network of data centers. They mirror content all over the world and have lots of peering agreements. That means that they are closer to you as a customer. When you request to watch a video it could be routed only from the nearest data center, to an ISP (Which may even be YOUR ISP), to you. It's fast!

Contrast this with a startup video streaming service that can't afford an expansive network of data centers and can't afford to pay for multiple peering agreements. They get one ISP in one location. So when you request a video from them it goes from wherever their data center is to their ISP, to potentially a larger ISP (This connection is often throttled to save the smaller ISP money), along routes that are the most cost effective for the ISP rather than the fastest routes, to your ISP (Also potentially throttled), and finally to your computer. This is definitely going to be slower.

If you have the money, nothing stops you from speeding up your traffic by co-locating / peering with Tier 1 carriers. ISPs just won't be able to FORCE companies to do this by throttling their traffic if they don't co-locate / peer.