Don't worry, most people don't understand the physical infrastructure of the internet. However, from my understanding, a direct connection to the internet backbone is what gives tier q ISP's their God-like monopolizing power in a given region (like Comcast in most parts of Baltimore city).
However, the backbone nodes require maintenance, so the fee to connect directly is expensive. You can't simply move next to a backbone node and plug in. I presume that backbone fee is the primary reason for the individual's fee for hosting an NYCmesh node.