Well in 2014 they did finally repeal the rule that prevented the network hardware from being installed: http://www.geekwire.com/2014/seattle-approves-bill-allows-fi...

Then they fixed the TV franchise issues: http://www.geekwire.com/2015/seattle-city-council-approves-l...

As a result of the first CenturyLink started rolling out (expensive) fiber, and after the second CL started offering Prism TV. So I think most of the blocking issues have been fixed now. Remains to be seen if/when Google Fiber will reconsider Seattle.