This is the route I'm thinking - crowdfunded. Problem is how do you crowdfund "unfettered, utility-style access to the internet" when your funders are spread across the country? It would have to be municipality by municipality. Much harder to get a concentrated volume of funding.

Could go the VC route, are there other companies doing this right now? Is the profit model not sellable to a VC yet?

It might not be feasible until the actions of other ISPs drive demand high enough for new ones.