If you "free market" types figure out a way to get ten different companies competing on public fiber in 100 different cities across the US, then I'll finally listen to this argument. Until then, realize that there is no market. It's a monopoly.
Stop dismissing consumer protection with a wave of your magic market wand when you really have no idea what you're talking about.
Right now, the FCC has to receive comments from the public but does not have to listen to it. If the FCC were bound by the vote of the public, it would likely behave very differently.
http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:l...
This doesn't really help in low-population areas though, as there's little incentive for anyone to update the lines.
The result of the regulation is a mostly healthy market in consumer ISP service, which is weird.
So the FCC is required to force the providers to comply with the will of the people. And they're not doing it.
This is also the case for many Americans, and with our FCC director also being pro-merger, it could also get a lot worse (your two options merge into one option). The ISPs have lobbied and colluded with each other to the point of making their regional monopolies legal in order to have no competition. This is why we need government oversight of this industry, as they've done a damn good job making sure you don't have the option to switch providers if you don't like them.