Verizon redirecting navigation errors to its own search service

I have Verizon FiOS (which I like) and live in southeast Pennsylvania (a little less than an hour from Philadelphia). The other day I mistyped a URL into the address bar and got a screen like the top one here instead of a browser error message. First time I'd ever seen something like that.

Chris Messina recently Twittered about this. He linked to a blog post which linked to an article that described the phenomenon. Seems like a pretty clear net neutrality violation to me. It kind of creeps me out. I guess it shouldn't come as a big surprise though.