It would be nice if municipal fiber just provided a dumb "layer 2" pipe to some nearby PoP where you could shop around for an ISP who knows how the internet works. Basically the dialup model, but 10000X faster. Then municipalities wouldn't have to worry about stuff like IP addressing and DMCA notices.

The main disadvantage is that packets to your neighbors need to hairpin through the PoP instead of staying local, but that's probably not a big deal for residential traffic.