Effectively makes it illegal, as far as I can tell, for a community to decide that internet access is similar to roads or water infrastructure and make it broadly available at low rates.

It depends if you think internet access should be treated as an infrastructural good. I personally think that makes a lot of sense. While I wouldn't want to see anyone make a law against private internet connectivity, if a town wants to pool their money and pay to build out infrastructure that should be legal.