Sure, we could all benefit from more broadband competition (and less regulatory barriers to entry from local governments). But would you really prefer the alternative of governments providing internet services instead?
Municipal ISPs work just fine. Governments already provide (or contract with private businesses to provide) mail, electricity, water, sewage, garbage collection, roads, etc.
In an area that already has adequate service competition and coverage I don't see any reason they would want to run a municipal ISP. But state-wide laws that inhibit municipal ISPs, in order to protect the current ISP duopoly status quo, don't make sense either.
It's not like it's something that requires new taxes to run. And many utilities already have to run their own networks anyway.
Just like DHL (also owned by the German government in majority) has shown the same.