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A few reasons.
The internet is taken for granted and this would be like a social cap. In theory, something could take its place in limited form in private settings.
The internet travels around the world through undersea cables (long enough to encircle the Earth 180 times) which then go into servers which then go into cables which then reach your residence, and that's a lot of service strain we add onto by putting the internet wherever we can.
Knowledgeability isn't as appreciated as it used to be, and having a hub for it would un-devalue it.
It would help maintain the right flow of interaction and information and combat things like misinformation.
So that people don't pose a hassle to administration.
To bring people together.
Some countries want to ban it entirely, and it would serve as a good middle ground to pacify the urge to do this without eliminating the internet.
It's no different in my opinion from proposing something such as us all living in communal housing.