Congestion/latency/data caps - I've observed no congestion, and have no traffic caps. "Competition" would create differentiation on providing less service.
Privacy - it's a municipal ISP. I'm pretty sure they're not selling my data to the surveillance industry. If it turns out they are, then I have recourse through the local democratic process rather than the standard "tough shit" response from a corpo. Given how the markets for cell service, webapps, etc work I don't have much faith that even in a competitive market, this would end up as a point of competition.
Email / website hosting / etc has nothing to do with the physical connection and therefore already has strong competition across the entire Internet. And actually this applies to the privacy point as well, with VPNs.
The model of the wholesale network is GPON. They obviously didn't string a dedicated fiber from the NOC to each house. So either speed is constrained by the gear the wholesale network buys, or the wholesale network would need to run a bunch of extra home runs so individual provider gets their own home run to light with their own gear.
I could see this last bit being a benefit in 10-20 years when gigabit isn't considered fast enough if the municipal fiber doesn't keep up. But given the municipal fiber built out the gigabit network while the coax incumbent was happy collecting rent on old infrastructure, I'm willing to give them a pass for the foreseeable future.
As to the wholesale network being GPON, there's always a point at which the network goes from a shared medium to a dedicated strand to the house. Wherever the PON splitter is, multiple splitters could be co-located, or, direct connections to be patched into for ISPs that don't want to use GPON. A dedicated connection is another place competition could exist, for example
ISPs could compete on lack of congestion on their backbone, privacy, latency, price, "value add" features (like email, website hosting, etc), and speed depending on the model of the wholesale network