Free internet. That's rather creepy from Google. When they roll this big it would hurt other providers, which in itself isn't bad, but having only Google as a choice is. Can they even do that by the way (anti-monopoly regulations)?
Yes - Google does not (A) Have a monopoly in providing Internet to the home and (B) they are not attempting to leverage their monopoly in search (which they _are_ pretty close to having) in order to achieve dominance in another market.
I think they are clear from an anti-trust position.
If Google is offering 100x the speed in another city, Time Warner, Comcast, AT&T etc. will have a hard time explaining why they should retain their monopoly unless they offered something competitive.