here in switzerland some of the DSL providers also provide their own set-top box that provides access to TV channels.
Which is funny because at first the Cable TV companies brought internet to the households and now the phone companies are bringing TV.
Anyways: While the bandwidth for internet is available at bandwidth from 300/100 kbit/s up to 20/1.2 Mbit/s, the TV functionality uses bandwidth independent from those plans allowing even the 300Kbit/s customers to watch TV in acceptable quality.
If what this Google proposal means is something like that, we really shouldn't care. This is not about building a private internet, this is about adding additional (and voluntary) services to the existing internet connection.