I think governments should be able to make any business they want as long as it can support itself like the mail service. After all the free market is supposed to be more efficient and we also need some option when competition is just not showing up.
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I'd really like to see fiber and banking as services at the municipal level that could lilely pay for themselves. However services needing to support themselves encourages short term solutions. Libraries, parks, and schools are unlikely to turn a profit but are critical to providing a minimum quality of life. Public transportation investment pays off over decades not a financial quarter and provides long term tangible benefits to the city beyond the fare box. If it pays for itself it's a no brainier, but many things that cost more than they make or have long term payoffs that are hard to measure are critically important.
Yeah im not saying apply this to everything but right now its like the municipalities get sued if they do stuff and thats just not right.