The FCC always does the wrong thing. After eight decades of constant efforts to retard progress and competition in media and radio technology, we can't really be surprised now. I for one am not sad to see other regulators attempt to pick up the slack. I'd certainly like to see a more active FTC, for example.
For instance, a number of european countries have a strong public broadcaster to provide a neutral source of news. PBS or NPR aren't really comparable in most cases.
And in many cases, local stations aren't owned by a corporate entity, completely making such rules irrelevant.
Public channels are also funded by the government, so there can be institutional pressure to present the government actions in a good light. Even if there isn't, a change in public policy might mean less spending on the public channel, which might mean journalists lose their jobs, which is significant incentive to promote pro-status quo viewpoints on the channel.
Giving air time to flat-earthers isn't neutral, it's pandering to idiots.
Neutral is clear and factual reporting on issues, regardless of where on the political spectrum that lands you.
Reports are factual, there is little to no opinion and government issues are frequently included. Atleast in my experience they have been very good at keeping neutral.
And no one could argue that the US media market needed more centralisation.