He's just being realistic and saying it doesn't make sense for this country... there would be so much fibre to be dug it would be ridiculous... and that's just the start. Switches and other network equipment require serious capital expenditure... which, especially in the current economic climate isn't going to happen.
Yup
It's relatively cheap to run fibre to every house if they are close together, and you can use overhead lines (IIRC Japan use telegraph pole type things in a lot of areas where population density goes down), it's very cheap (per customer) to run it to a block of flats and use the same fibre to provide telephone coverage as well in comparison to running dozens/hundreds of individual copper lines.
It gets very expensive when most of the population is in individual, existing dwellings even just 50 feet apart, each requiring individual lines, and the road/pavement to be dug up (if you're building a new estate at the very least it makes a great deal of sense to lay ducting for fibre etc at the same time you put in the other utilities).
IIRC VM won't run new cables to individual dwellings, even if they are just a hundred feet outside of their current area (or inside but require more than just a run from the existing kerb access point), but will run it if say a small block of flats has enough people willing to sign a contract in advance (or if you're a business and willing to pay something along the lines of the true install cost).
Basic business sense says you don't generally spend thousands of pounds to connect up a single customer who might only be with you for a year, on a £20 a month contract - and that is one of the reasons VM aren't expanding much at the moment (the other being they are still massively in debt from getting their current network up).
One of the things I really wish people would do when they compare the UK's BB with that of other countries, is compare like for like - we have (from memory) much better overall coverage for BB than many other countries, what we tend to lack is the ultra high speed connections.
On a vaguely related note, isn't there some work on a DOCIS 3 variant that can offer something like 200mb? (50mb being the version VM are going with for now).


(Can`t get any faster ,frequent resynchs too )