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Here's why it's a good idea to insulate underground cables or use optical fiber: https://youtu.be/Ev0PL892zSE?t=357 (TLDW: the salient point is at 7:20: https://youtu.be/Ev0PL892zSE?t=440).

Though, I don't know if insulation helps in the case of lightning. Apparently with Ethernet, special grounding thingies help.

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Yes, in production it is suggested to use current-limiting resistors, pull-down resistors, a fuse, a zener diode or a TVS or a varistor. Using all the suggested protective circuitry in the worst case the fuse should be the only component to fry in case of direct lightning strike.

Lightning crosses several hundred meters of air at the very minimum- what makes you think it won't arc over a few millimeters more, if that's the path of least impedance?

In general even the most rugged lightning/surge protection only decrease the likelihood of protected equipment being vaporized.

I agree that in some cases there is nothing to do and damage will be done by the strike and there could be no protection able to prevent it, specially if the equipment is directly hit. I would have corrected my previous statement but it cannot be edited.

have you worked with VDSL modems and lines?

it can be a nightmare.

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