Furthermore, afaik many small towns even in eastern europe(while making great strides, no particularly huge cities) boast 100 mbit connections.
Assuming both of those statements are true, It doesn't seem to me like the economies of scale argument is valid here.
EDIT: 100 mbit/$20, 500 mbit/$30, checked my ISP.
One of the first deployments of gigabit fiber in the U.S. was in Chatanooga TN, with a population density of 471.9/km2. New York City has a population density of 10,640/km2. Romania's third largest city, Timișoara, with population density of only 2,446.58/km2 is considered the city with the fastest internet in the world.
http://www.romania-insider.com/romanian-city-comes-out-first...
Everybody talks about the last mile being the most expensive part of infrastructure, but if the last meter is 90% of the cost of the last mile (I don't know what the exact proportion is, but it is definitely close), then 100 houses in 10 sq km census block is going to be in a cost category that is orders of magnitude higher than 100 apartments in a tower with a 9.9 sq km park around it.
It sure as heck doesn't explain why there's no gigabit FTTH in Manhattan proper--by your reckoning the borough should have a residential density even higher than its overall average would suggest by virtue of Central Park taking up so much of the upper half.
This is a commonly repeated argument in favor of the status-quo in the US, and I'm just trying to refute it whenever possible.
It depends on where you are. Two different apartment buildings in DC or NYC could differn, one getting FIOS and the other on a congested cable network or low-speed phone company DSL circuit.
But don't get the idea that the internet is generally terrible in the USA. I'd imagine my situation is similar to most others - I live in a smaller town (population < 50,000) and about 90 miles from the nearest 'big' city (Detroit), but for $39.99 I get 30mb cable internet which I'm more than happy with. They offer 60mb and 100mb packages but I don't see the sense in spending any more.