Google probably isn't too worried about making a profit on this right now. They are doing test markets to find out how expensive it really is to do. They are also doing very "easy" cities so far. Provo had millions in fiber the city paid to lay that was way underutilized, Google is buying it off them for $1. Makes it pretty cheap when you get that kind of deal. Austin is a major high tech city where multiple companies laid fiber 10 years ago and went under, so they'll get it for a song there too. Dunno about Kansas City, but I'll bet it was the same situation there.
Let's see how they do in cities that have no existing fiber infrastructure so they have to get permission to tear up streets, or have to string it up on poles and constantly repair it whenever storms take it down. Let's see how they do in older cities in the northeast where every other time you dig you run into something underground that no one knew was there that delays you by weeks or months. I wouldn't be surprised if it never really goes national, they'll just hit all the easy places and ignore the hard ones. If you don't have decent options for DSL where you live, I wouldn't hold my breath for Google to come anytime soon. Running fiber all the way to your house is a lot harder than running it within 3500 feet of your house, which is all that is needed to offer you 50Mb DSL. If you can't even get double digit speed DSL, Google may never come.
If you look at Google's business model, and see that they are selling Internet/TV for less than anyone else and probably not making a profit on it, you have to wonder why they offer that product. Then realize that Internet/TV isn't the product, you are the product! They will collect information on what web sites you visit, what you watch/record on TV, what ads you FF through and which ones make you stop and watch, and they'll aggregate all that with data they already have - what you search for, where you go if you use Google Maps, who you email if you use Google Mail, who you call/text if you have an Android phone, and have even more detailed information on you to sell ads directed at you to companies everywhere.
Some people think having more "targeted" advertising is good so they don't see ads for what they don't want/need, i.e. so a single guy doesn't see ads for diapers and senior citizens don't see ads for a Lady Gaga concert. They just haven't considered the ramifications of that. I don't want companies knowing so much about me they can market stuff directly at me. I'd rather marketers waste as much money as possible trying to sell me stuff I don't want, it limits how much advertising they are willing to do. If they knew I was in the market for a new car, can you imagine how badly I'd be bombarded? They spend tons of money advertising cars as it is and that's a shotgun approach since only a few percent of people are actively looking at any moment. Can you imagine how many ads you'd see if they knew you were ready to buy and looking to spend at least $50,000? Look at what happens when a bride to be gets on the mailing list for all that crap they send. What if all she saw on TV or the internet was ads about bridal events, dress shops, caterers, DJs and so on?