>I just think it should work differently. Preferably without ISPs at all.
I don't think that is possible, especially without ISPs. Someone has to own the backbone and own the hardware capable of handling tens of terabits while routing it correctly and without extra delays. Your Linux router can't even handle the Internet's full routing table as of now, and it certainly would not be able to deal with the even more fragmented routing without ISPs. Even only without residential/business ISPs.
>Colocations for actual people = good
>Multiple square kilometer Microsoft exclusive hyperscaler = bad
The hyperscalers weren't an issue until recently. Before AI it was only AWS and Cloudfed. It's a reasonable take except that most people don't have a need for collocation. Business, even small ones, are the main customers. No need to have huge racks onprem with large HVAC systems, large UPSes and at least 10Gbit fiber when you can move it to a location dedicated specifically for that.