Well that's what happens when you treat the internet like a "utility" ... you get government sponsored monopolies. The FCC is the biggest roadblock in this country when it comes to technology innovation and progress.
Let me first say I hate regulation as much as any other business person.
That being said, the reason there is so little choice is: (A) it costs an insane amount of money to invest in enough infrastructure to get economies of scale large enough to compete with the incumbents; (B) though monopolies are illegal, the government in no way attempts to prevent monopolies from existing, partly because economy of scale is beneficial to consumers and partly because government is made up of people who don't have any idea how to do anything other than shake people's hand and try not to offend anyone.
The lack of choice has nothing to do with FCC regulations.
Given that there is no choice and it's primarily because no other company wants to invest billions to become an ISP which has relatively small profit margins, it SHOULD be regulated as a government-sanctioned monopoly. Since the government allows the monopoly to exist, it must also prevent the monopoly from abusing its power.
Either regulate it as a utility, which it effectively is, or break up all the ISPs so consumers actually DO have a choice.
The problem with breaking it up is costs will go up for consumers, in some cases probably quite a lot.
The lesser evil is, I think, just to regulate it and sanction the monopoly. I'd be happy if they broke up all the ISPs as well so we actually did have a free and open market, but I seriously doubt that will ever happen. It just doesn't make financial sense in this case.