I think this is definitely a factor - but it's vastly overstated. The USA is more urbanised than many European countries at 80%, so there's definitely quick wins for the vast majority of the population.
The big difference I see is the way these services are regulated. In the UK for example, the physical infrastructure associated with the last mile is owned by a company that just manages this, with regulated prices linked to asset investment required. Services are then resold to Internet Service Providers who provide the IP services and compete on price and other factors.
The capital costs of providing the infrastructure are restrictive and the advantage of competition does not outweigh the cost of having multiple last-mile infra.
Note - I've used some simplifications on the ownership and extents of infraco/telco ownership, but the concept holds.