Regulating cities so they don't do something stupid is reasonable. Remember muni wi-fi? That ended up being a massive wealth transfer from taxpayers to consultants and vendors of gear that didn't work. After the networks were built cities were left holding the bag and trying to decide whether to continue to operate a system nobody used or throw in the towel and admit they wasted millions.
(Of course that would run contrary to corporate interests, so don't hold your breath. It's clear who these states are trying to protect, and it isn't the cities.)
Sure, cities shouldn't be involved in transferring wealth to billionaire sports team owners either. But I bet if you gave voters a choice of a major league sports team or incrementally faster internet, they'd choose the sports team. You may not like it, but sports are still very popular.