If one served a website where the player was able to provide quality options for channels that don’t have them, would Twitch be OK with that?
So you are saying you want to take the stream, recode/transcode it, and redistribute it on a CDN level so all viewers all around the world maintain a high quality connection? (I don’t see any feasible way for a player to be able to adjust bitrate/quality without doing this)
I do believe Twitch would have a slight problem with it, they would lose the ability to track viewers, ad views, and other important information.
Twitch does provide quality options to non-partners who maintain a high enough viewer count. I’m not certain what the viewer ranges are to earn this privilege.
EDIT: See this,
It’d be a web app that consumes the source stream and reduce the quality of each segment in it to provide different qualities. As soon as Twitch enables its own quality options to the streamer, the web app would stop and redirect the user to twitch.tv.
I can see the problem with your second paragraph.
This would circumnavigate the adverts and thats against Twitch TOS