This isn't about bandwidth. It's about content. The only thing standing between YouTube and the CableTV providers is bandwidth.

If Google cracks the bandwidth nut, they can essentially replace TimeWarner, Comcast, etc. in one fell swoop because they can easily replace 100% of the services those companies offer at a fraction of the cost.

Kansas City is essentially giving Google free reign to perfect their rollout and implementation processes. The next city that Google wires up will probably cost them a fraction of what Kansas City does because I'm certain that Google will automate every last detail that can be automated.