>Small, local competition for ISPs do not make sense over the long term.

I would love a Glass-Steagall for the telecom industry – long haul and last mile not allowed by the same company. ISPs must peer at local exchanges. Add municipal ownership of the last mile fiber with ISPs leasing capacity to individual residences (allowing you to choose one of many) and the world seems ideal.

I'm lucky enough / chose my home such that I am served by a local ISP which is hooked up to a local exchange. It's great. The biggest bottleneck is usually WiFi, and after that peering. Having the last mile not be the weakest link is great.