Um - in this case we're saving the internet (well, really radio spectrum that people use to access the internet) from private corporations, not the government. A totally free market sucks because there will never be a properly-maintained commons. If it weren't for the government, maybe I'd bolt my router to a 10-kilowatt transmitter so I can get my home wifi signal while I'm grocery shopping. So what if it sucks for everyone else! The government quite rightly regulates me in that area and says I can't do that.
If the internet as we know it today ever dies, I'm 80% sure it will be due to private corporations screwing everyone to make an extra buck, not due to government over-regulation.
I understand your point in general, but in this case you could probably solve it by building a faraday home, and/or use a frequency that decays rapidly, combined with repeaters around your home to counter your signal suffering decay.
If the internet as we know it today ever dies, I'm 80% sure it will be due to private corporations screwing everyone to make an extra buck, not due to government over-regulation.