Considering that they also very definitely involve interstate commerce (the internet)
That reading would seem to permit the Feds to override any and all State laws against political subdivisions doing anything. Some States have decided as a matter of public policy not to engage in public solid waste collection but rather to rely on the private sector for such services. Can Uncle Sam override such decisions?
I would agree with the FCC's action if it was limited to overriding laws that preclude people from starting co-ops. I think it's a bridge too far for the FCC to tell a State that it must allow a political subdivision into the telecommunications business.