Don't see nothing wrong with competition.
There's nothing wrong with competition per se, but there are some potentially bad outcomes. If Google is just another option competing on roughly equal footing with the other providers that's great, but they may not wish to compete but to dominate. What if Google decides they're going to make all their money from data mining from/advertising to people, so they can sell internet service and TV at or even below cost? That would drive some of the weaker cable companies and telcos out of business, and hurt the ability of the rest to invest in improving their infrastructure. I'm sure many people think "they suck, so why should I care?" but you might start caring if Google became your only option for internet service (or for TV, if your house has trees and satellite isn't an option)
Where I live I have only one cable company and one phone company. The cable TV rates for the exact same packages and identical channel list for the same provider I have here have always been about 25% lower in a city 25 miles away, because they have two cable companies and the competition forces their pricing down. Google will force prices down, but if they force it down too far, they'll become the only game in town. If the FCC doesn't uphold net neutrality, Google could put Bing, Hotmail, and iTunes on the slow lane to "encourage" people to use their services instead and you'd have no recourse. They are playing the long game, and no one knows what their end goal is.