i don't think you're misremembering it, it's just that there was a huge commercial push to quash the idea of a "communist internet" that would cut them out of the business by sharing cheap/free internet service. plus, the tech evolved.
but the idea of mesh wifi didn't die. in several major cities, mesh wifi/internet solutions exist. NYC Mesh, for example, is the local mesh network here in NYC:
We are a diverse group of volunteers dedicated to ending the digital divide and extending high-speed, reliable internet to all New Yorkers. You can help by joining our community network to get online, volunteering to connect neighbors or grow the network, and donating to improve our community infrastructure and ensure access for all.
don’t be fooled— there’s purrder in those eyes!