You can still order Google Fiber in SF/Oakland/Berkeley through Webpass, but they only will install in multi-unit buildings and Google barely makes any effort to promote or sell their product. I just get the sense Google's heart isn't in the fiber business any more.
With Google on the broadband bandwagon, this project in their back yard could make sense and perhaps bank some goodwill with the locals at the same time. And they could partner with the Boring Company to drill holes all over the place.
That's pretty much how Google does business. They come up with something, throw themselves into it for a good year or so, keep it rolling for a few more, and then just stop. Wave, Buzz, Reader, etc. Frankly it's astonishing they never killed Gmail.