In an article at http://www.physorg.com they were talking about the “ambitious plans for big Wi-Fi networks to provide free or low-cost wireless Internet access are being abandoned or scaled back by US cities as the economics of the deals turn out to be more challenging than expected.”
From my perspective this was really bound to happen. There was just no way that providing free or low-cost broadband speed, reliable Internet access and allow of competitive access to the network while making money.
The technology is changing at such a rapid pace and “too many municipalities continue to focus on large, ambitious public wireless projects that have no clear path to profitability.”
WiFi for these large deployments is dead, the technology requires a density of hardware deployment that is not only unmanageable but also very difficult to scale. The promise of WiMAX or other widely deployed technology will probably usurp any citywide WiFi, the business models are just not complimentary to universal coverage.