The dude in the video went to the William Shatner School of Acting.    "We.......need more.......bandwidth"

I think that the Feds are already monitoring Internet access.  If they are currently not monitoring all access, they will soon.  So, yes I find it scary, but I think it's inevitable. 

As long as there are still private companies doing broadband as well, and the government is just doing this as way to prevent lock-ins and price fixing, then I don't have have a problem with it. Right now, the people providing service have little incentive in increasing their networks.

If the government did a complete take over, I'd be a little more worried about it. Mostly because it would be ran by non-technical administrators.

What I'd like to see happen, is more encryption on traffic.