I would not be excited about my ISP offering these extra services. I just want them to be dumb pipes- deliver my data without messing with it in any way. That should be their only business concern, and all innovation efforts should be spent on improving their network.
Because being a simple provider of infrastructure removes any added value from your product and opens you to a price race to the bottom. Of course there will not be a slew of new ISPs given the cost of the infrastructure but it is never a good feeling when you know that people can simply ditch your service and go elsewhere without any cost.
This is what happened to the mobile market, to the PC market, is currently (somewhat) happening in small scale public transportation and (at least in Europe) has happened to food producers.
But there are several ISPs out there. Granted, it is a very hard market to get into but nevertheless there is (most of the time) more than one. Personally I'd like the Internet infrastructure be handled more like roads (i.e.: the infrastructure is technically owned by the government but built by and rented to private companies)