Your whole post is based on a false premise, which is that customers have a problem with the status quo. I think internet companies have a problem with the status quo. They want somebody else to build the fat pipes crucial to their business. That's why Google fiber is a marketing and lobbying tool and not a real business.[1] But I don't think consumers here are any less happy than in other places. According to Akamai's state of the internet, the U.S. ranks #8 in average connection speed, ahead of places like Sweden. They have no reason to be. I've never heard someone outside my engineer friends complain about the lack of gigabit or even 50 Mbps+ connections. As long as its enough for Hulu, people are happy.

There are also other problems with your post. For example, we didn't sell off monopoly rights. Its been illegal for municipalities to grant exclusive franchises since 1992. Also, franchises don't come without strings attached. Here in Phila, Comcast has to run cable to a bunch of poor neighborhoods and charge $13 per month for service. Distribution requirements and regulated rates exist in the cable world.

[1] At the end if the day, if Google bought TWC instead, Google's average profit margin would go down.