There is a pretty significant problem with this reasoning: what market are you referring to? Most Americans have zero, one, or two broadband ISPs they can receive service from. In most cases where there is any choice, it is between cable and DSL, which have very different technical characteristics and are not always interchangeable.
I could get behind a market-based approach if there was some kind of proposal to foster a market. What happened to the line-sharing requirements that gave us competition among DSL services in the late 90s? That was a market-based solution and it worked well; that approach continues to work well in other countries.
Instead, the current approach is to leave the monopolies and duopolies in place, and to do nothing to reduce barriers to entry for competing services or otherwise foster a competitive market.