You make a lot of valid points. I guess in general I don't believe that a government can somehow prevent a certain type of commercial transaction and somehow create value. The obvious counterexample that comes to mind, and that you alluded to, is that of ransom. However, I think that's a bit of a stretch and makes light of actual violence.
One thing that stuck out to me though:
> If it were the case that ISPs were the underdog here, because compelled by legislation to spend their private earnings to build cable that they cannot dictate price on and must lease compulsively, then you would have an argument.
I feel that opinions of issues are heavily influenced by the actors involved. Amazon vs Hachette being a key example. No one likes Comcast, nor do I, but I don't think that choosing sides based on the beneficiaries is the right way to go about things. I don't think you can argue that a person or group (corporation) took a benefit in the past and is now beholden to the person that dispensed that benefit. That's especially true if the decision makers and owners (stockholders) are a dynamic group.
>The downside is you end up with tons of redundant infrastructure investments, and wire itself is mad pricey
I normally discount this argument as it is often used as a justification of centralized control. Besides, one can argue that most commercial activities are redundant; from advertising to the endless variety of consumer goods available to people in the US. I do concede that this likely won't work in a lot of places as the technology currently exists. My hope is that some new technology can come about and change the economics materially. And I think that a light regulatory environment would best help foster this technology and encourage new entrants.
Mesh networks anyone?
http://www.wired.com/2014/01/its-time-to-take-mesh-networks-...