This wouldn't be a problem if ISP's weren't de facto monopolies. If there was competition in this space, then there would be incentive to improve the infrastructure and Internet speeds. However, ISP's kill competition by making legal arrangements with local governments to only do business with them, and by cutting competitors' cables. Since we have no way to guarantee reasonable speeds to small time websites now, we…
5G networks could very well change that. Right now people rely on LAN, however it's very possible that with the growth of 5G people will just use over the air internet rather than having their own setups everywhere they go.
I guess it would be easier to set up municipal ISPs, since minimal wiring would be needed. But the lack of real competition in the cell market seems to indicate that the problems are pretty similar for small startups.