California, the Wi-Fi state
gigaom.com
gigaom.com
http://gigaom.com/2006/12/20/earthlink-sf-milpitas/
Milpitas is my hometown but since I'm away for school, I haven't gotten much exposure to the city-wide WiFi. I do remember receiving WiFi signal from Earthlink in surprising places the last time I was in Milpitas. They were offering free access for a while but I think the subscription requirement has kicked in by now.
I love and fully support the idea of mass WiFi access. I'm unsure about municipal funding, however. Either way, it's interesting to observe where this might be going.