Ok ok. I'll reformulate my post a bit:
If I have a 1KBps connection and all I can download from you is 200% (that's 200KB then), then what happens if you are the only one that has the file? Or if you are the only one I can connect to that has the file (basically the same)?
I'll wait for ages until you release an upload slot. And even then, how sure can I be that I'll get that upload slot?

Let's say modem users all had 56k connections. That's theoretical 7KBps.
With a setting of getting 200% of your max upload bandwidth before being cut off, they'd get 1400KB of a file, which isn't even half of a decently encoded .mp3...
Besides, as I said, that speed is theoretical: even if you have a 7KBps connnection you are more likely to get around 3 to 5KBps.

Not everyone can afford a broadband connection and for some people it ain't even available where they live.

Hmm, now that I think about it, LW would have to calculate one's max speed in order to determine what the 200% would be for that user.
In other words, how does your LW know my max dld speed?
And what happens if I put Modem instead of Cable/DSL in the Options menu?

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iMac G4 OSX 10.3.9
RAM 256MB
LW 4.10.5 Basic
ADSL anything from 3 to 8Mbps/around 1024kbps

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