I recently had Google Fiber installed. Every single person I've talked to about it has responded with something similar to "Oh man, I wish I had that!" (That includes my tech-illiterate mom and the guy who came to install it who lives in a different city.) Of course consumers want faster, cheaper Internet connectivity.
"They want somebody else to build the fat pipes crucial to their business. That's why Google fiber is a marketing and lobbying tool and not a real business."
So, Google actually does the thing you said they don't want to do, and your response is, "well sure, but they don't really mean it?"
From the FCC: "The United States is 26th out of 32 countries in the 15-25 Mbps speed tier (advertised) with an average stand-alone broadband plan price of $56.50. The lowest advertised price for stand-alone services is in Slovakia at $18, while the highest charges are found in Switzerland at $180"
Although they don't summarize the findings above 25 Mbps the story looks much worse.
With respect to availability: There is a world of difference between 1Gps@$1000/mth and 1Gps@$50/mth though both qualify as 1Gbps availability.
Finally >10Mbps is pretty broad bin today and fails to meaningfully differentiate "very" high speed services.
Instead, wired net connectivity has been overtaken by puny LTE...
There are also other problems with your post. For example, we didn't sell off monopoly rights. Its been illegal for municipalities to grant exclusive franchises since 1992. Also, franchises don't come without strings attached. Here in Phila, Comcast has to run cable to a bunch of poor neighborhoods and charge $13 per month for service. Distribution requirements and regulated rates exist in the cable world.
[1] At the end if the day, if Google bought TWC instead, Google's average profit margin would go down.