Even if they sub contract out the work, I'd rather not have the government be my ISP. The right way to go is to get local governments to change rules allowing easier permitting for others to run fiber. I want competition, not government ISP. That is where real change can happen.
Personally, I *want* "fast lanes" because they remove popular traffic off the main transit links. The cost of those fast lanes get passed on to customers that subscribe to things like Netflix. For people that don't have Netflix, they get less traffic on the links they care about. Even with cost to Netflix, it may still be cheaper for them than sending bulk data over their own transit links. It is a win-win.
Stop trying to make rules for how the Internet works. Peering, even if it isn't settlement-free, is a good thing. People, use your brains!
My home town, Burbank, CA has metro fiber for businesses. Studios love it. The fiber is actually owned by the cable company. Heh!