Exactly. Pass a law that requires to lease the last mile (connectivity between POP and your home) for reasonable cost (i.e. maintenance cost) and we will start seeing actual competition.
We had huge selection of ISP in early 2000 exactly because telcos were required to do exactly that.
Not entirely. There are no terrestrial internet options in the middle of the ocean, for example. Starlink covers areas that are impossible to cover with terrestrial internet even if you completely ignored the economics.
The sheer amount of government funding makes you wonder why there isn't a publicly operated telecom option these days. These companies insist that funding is required to cover rural areas yet many of us still have nothing while the companies are making billions in profit.
As an example, Ontario is "investing" 4 billion to have 50mbit down and 10mbit up available across the province by 2025. I'm in a region that already met those requirements and yet my DSL barely manages 6mbit down. When checking with ISPs what my options are, it turns out the best I can actually get is fixed wireless at 25mbit down and 5mbit up.
While Starlink performance has degraded over the past 18 months or so, I have noticed it slowly recovering as more satellites are getting up to orbit. My worst case speed tests are hovering around 40mbit down and 5mbit up while some good days can occasionally hit 300mbit down and 20mbit up.