I think there are good ways to be involved and bad ways to be involved in the market. IMHO the anger over Solyndra's loans is justified not just by the facts that were apparently readily available about that company, but by the way the government was essentially picking winners in the market and providing money before any good was delivered rather than promising to support companies that had already proved their own value. I'd much rather the government say "we're going to start buying electric cars for our own fleets on X date, and we'll do it from whoever can make the best product" than say "we're going to give new company X some money to design and build electric cars." You could do the same thing by committing to buy green power from nuclear/solar/wind providers rather than providing or guaranteeing loans from unstarted companies. I think if we can make commitments to buy products from companies that have already worked out the details and have proven themselves to investors we can get a healthier outcome. Not only does that get them value for the money that they did spend, but it will multiply that value by adding itself to money from investors in the other startups that didn't get picked but produced second-best products or valuable new technology. If the market knows that there will be a buyer, then someone will get the investment that is needed to become a producer.
I know it won't happen, but it seems like the best way to spend this subsidy money would be for the government to defray the cost from the best and cheapest rural Internet providers (or give out vouchers that people can use to pick their own supplier). That way there will be incentive to provide good service, and there will likely be service provided by more than just the companies that end up coming out on top and getting government money. I'm sure what they'll do instead is just throw money at anyone who provides even crummy service, and as a result they'll get the lowest denominator return on that investment. Maybe this plan won't work as well in monopoly industries like cable, but it seems like the majority of the markets would work better this way.