It's common to question why small villages like this even exist. "To enable reasonable internet connection" is one of the best reasons I've seen so far.
I'd also note that about 10% of the people in the town participated in the vote and the final vote was fairly close. Hopefully it works out because options aren't great if you can't get Verizon or Comcast in much of the Northeast. (My dad in Maine has about a 0.5Mbit/sec connection.)
On its face, a fiber district also doesn't require a city hall, but maybe that's what it takes to fend off predators like Comcast. Of course you're right that some areas would like to attract any provider at all, but that's FCC's fault for the constant delays and roadblocks it imposes on WISPs.
1. Massachusetts got rid of county government in Western Mass in the late 1990s. There are some quasi-county offices like the sheriff and a regional cooperative to handle some planning and permitting but everything else is handled at the town or state level. More info here: https://en.wikipedia.org/wiki/List_of_counties_in_Massachuse...
2. Town meeting, an annual event where everyone has a chance to speak and vote, is deeply ingrained in civic life. Its the last vestige of direct democracy and a good way to end a long winter. Every dollar that the town will spend for the year is voted on and any resident can speak on any item (warrant article) presented.
I live one town to the east of the town in the article btw and I was able to speak and help vote down a warrant article at the last town meeting to add town regulations for WISPs.