Because Google Fiber will come along and eat your lunch. Hopefully anyway.
> Why make good smartphone hardware when you can bundle a package of hardware, software and BRANDING! And charge vastly more?
Apple does that, and they make a fine business out of it. But Android, who doesn't, is overwhelmingly the market leader.
> Why sell access to information people want when you can sell access to marketing information on peoples searches helping pervert the information people use for their decisions?
Are you implying that all advertising necessarily perverts decision making? Indeed, 'brand' advertising arguably does. But a lot of advertising is just about making people who want it aware of your product. If you have a need and I make a product that meets that need, and you see an ad for my product, we are both better off now, aren't we?