[s73ver_]

I think those fears are extremely far-fetched because:

1). Don't most places that do this set up a company? As in, it's a company that happens to have one of it's owners as the city.

2). Does anyone honestly think that if such a thing were to happen, that private ISPs like Comcast would somehow, magically be exempt? That the government official would be like a Scooby Doo villan, saying, "Curses! I'd have gotten away with the censorship and spying if it wasn't for you meddling private ISPs!"