Look you are smart, and really I'm just speculating, but X will have to rely on hundreds of entities (contractor) to provide comparable level of service as other national competitors for them to avoid taking all services under an employee structure. Do you believe that given the number of ISP/ENTITIES out there, X can:
1 remain reliable
2 improve or protect its brand
3 starve off the DOL/IRS and any other group
X may be able to, but it is going to cost them MUCH more than what is given to ISPs now, and will they be ready to accept the inefficiencies and problems as a result while increasing their costs?