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How do you deal with malicious networks broadcasting under the same name? Do you use WPA2, or is data sent naked over the air?

How do you deal with someone making a Facebook with your first and last name?

Same answer.

Inb4 everyone renames their networks to nycmesh-something and MITM unknowing crowds

why would you trust random people more or less than other random people? That's crazy talk.

Are you using Ubiquity HW? If not, why?

They are cheap as hell and awesome.

Actually - what you should do, is have a customer pay a fee of $100 to connect to the system - and take that $100 and buy another mesh was with each customer on boarding.

https://unifi-mesh.ubnt.com/#products

I think you misunderstand the goals of this community-run mesh. The FAQ has some info on why they don't charge, who runs routers, and what they're trying to accomplish.