on Point 2: How is this any different then today with Comcast/Verizon etc..?
I think they've just realized for everyone to "move to the cloud", we need internet that makes it possible.
Many people use Comcast/Verizon-provided email services. Most people use them for their home voicemail too. And they can absolutely see your surfing habits if they want to -- excluding encrypted communications, of course.
However, having potentially millions of people with gigabit connections creates a whole new world for darknets so I think it's a net gain.