On one side, I think every community should have the right to build whatever infrastructure they please.
On the other, I agree that the FCC is a federal governmental organisation that should not have precedent over a State's rights. Something which has been abused by the courts for the last 50 or so years.
However I think everyone can agree that what is happening is corrupt. State/municipality legislatures are taking money and setting rules. It's a tough thing to stop. Can you remember a time when you voted that you were familiar with all the candidates for both state and city positions? I know I can't. Not even close. I usually just vote a ticket.
Another question is...why do we need representatives at the city level? Can we not design a system to allow citizens to govern themselves?
City councils' are probably the most corrupt governing bodies today. Yet everyone is so concerned with Republican/Democrat and the presidential race that we forget what affects us the most, elected city officials. The whole thing is backwards.
There are some improvements to local governments, like [OpenGov.com][1], but that is only the first step. The people of a community should get to decide directly if they want to build their own broadband system, or only allow a select few, large corporations, own it.
[1]: http://opengov.com/