I assure you, the 2003 USDA funding wasn't that bad. The real problem is that nobody else, generally, cared. The telecoms applied for grant money because they always apply for grant money; in most areas, they were only given grants when nobody else bothered to apply.
(Voice of experience. The USDA RUS grant is basically the only reason I still have a job. The wireless ISP I work for was given about $70k to broadband the hell out of a small town, population 800 or so. The penetration rate is still just under 50%, but those are the people that don't even OWN a computer.)