There is also the question of what happens going forward. Quite some time ago, Easton MD (on Maryland's eastern shore) put in a cable internet service through its municipal utility. Today, you can get 200/10 for $100/month. Not bad, but head a bit east to Salisbury, MD and you can get 1000/35 through Comcast for $105 ($80 for the first year). That's the big fear with municipal services. Upgrading head ends won't get you press like rolling out a broadband service in the first instance will.
That being said, municipal broadband certainly has a place. Maryland is spending a bunch of money building a fiber backbone in the rural parts of the state, and municipalities are hooking into it: http://www.westminstermd.gov/419/Westminster-Fiber-Network. These are places that don't have the population and density to support potentially even a single private provider, much less multiple competing ones.