Makes perfect sense for the last mile to be run by the government, just like the last mile of roads are.

Then you can have choice of ISPs. Or run your own.

if you want to an ISP which gives you a real IPv4 address, a guarenteed service and known contention ratio -- say they buy a couple of 10G lines from two diverse upstream providers like HE or Tata to a central location, land on a 52 port switch, and use it to serve their customers with 400mbit each way guaranteed and upto 10G if there's capacity.

On the other hand if you just want basic broadband with contention meaning that you could run into problems if everyone is pulling 50mbit, even though you can burst upto 1G, and perhaps you have CGNAT, you'll be paying less for it (the 10G uplink is spread out over more people), but that's your choice

This empowers the customer and ensures competition in the market, while the basic costs of fibre from a central internet exchange point are borne by either taxes or access charges (if you use the circuit you pay $5/month)