Earlier quoted context omitted.
There are a great many businesses, even in NYC and even in the high-tech industries here that absolutely depend on copper infrastructure. The world-renowned midtown hedge fund that I used to work for had a DS1 off a copper trunk that had the payroll system (a circa-2001 Dell Optiplex running Windows 2000) on it as recently as 2008. I assume they aren't now (god, I hope so, but that system hadn't been touched in years…
it's not about big cities, it's about unprofitable rural areas. The copper wire will be kept alive as long as it brings money.
While the unit economics are better because of the density, there are also more subscribers to serve, breeding its own infrastructural complexity. It may be more efficient to do it in cities per wire distance or unit of infrastructure, but there's also just more infrastructure.
For POTS to be economical anywhere, a sizable chunk of the population has to buy it.
I don't know what those tipping points are, but you can be 370% sure the ILECs have calculated this out meticulously.