1) Technical advantages are welcomed, just not legislative. 2) Arguing from the perspective of the Cato institute, who are you to place restrictions on the phones carriers sell? The root issue is whether providers have a monopoly or not. But keeping a distinguishing feature just as phones to yourself is just good business. 3) Completely agreed.

This paper (circa 2004) was written from the perspective that internet service is not a monopoly. In this situation the answer is clear; (to a libertarian) government has no business dictating how we should do business.

A large debate within libertarian circles is what to do when monopolies happen. The reflexive answer is no government interference allowed no matter what, the market will figure it out. Obviously in certain situations that doesn't work too well, as far as I know it's still an open question.