Google's own press release suggests they're looking for new ways to use ultra-highspeed broadband:
Or downloading a high-definition, full-length feature film in less than five minutes. Or collaborating with classmates around the world while watching live 3-D video of university lecture.
Now look at how Geneva, Illinois fought off AT&T U-Verse (called "Project Lightspeed" in the experimental phase) because they already had television franchise agreements in place and didn't want to get sued by the cable company:
http://www.geneva.il.us/att/Lightspeed.htm
(Note, also, that Geneva tried to set up their own broadband network and was roadblocked by AT&T. Karma is a bitch.)
I'm not suggesting that Google is looking to offer cable TV. I'm just implying that you can't waltz into a town and offer these kinds of services without raising the hackles of the existing companies that are providing utility services in most typical towns.
A town might willingly invite Google with open arms, but that doesn't mean it's a done deal by a long shot. Expect lawsuits.