I have a few observations to make.
1) "So what" that AT&T is only going to roll out this service to "tens of thousands of customer locations throughout Austin". Google is not promising to do anything more, with a plan to deploy it to select neighborhoods based on expressed interests from residents in those neighborhoods. The real question is whether AT&T tries to roll out AT&T fiber to the same neighborhoods or if they pick other neighborhoods. I would prefer the latter just so there's more high-speed coverage around the town.
2) I am currently a RoadRunner customer. RoadRunner sucks horribly, but AT&T's service sucked so much worse the last time I used it that I fired them as soon as I could. I'm not sure I would trust AT&T to make G-bit service work, given that they couldn't make dial-up or DSL work right in the past.
3) BRING IT ON! Competition is a good thing on all fronts. I also expect (hope?) to see other communications outfits (most notably Grande) try to get in the same game, which would be *great*.
I can't help but think of AT&T's announcement as a good thing...