I agree with you about the effects of regulation and privatization. The installation challenges of dense urban environments are no joke either. But:

> Every home in america has electricity and plumbing even though those utilities have the same density problem.

Plumbing yes, but it might not leave the property. About 25% of US homes have septic systems, and some states are as high as 50%. For water, 15% of homes use private wells, which goes to 72% for rural households.

It's not everything, but density absolutely matters for rural households. The US is vast and contains many areas where you are your water and sewer company because there's no municipal option.

That said, your electricity example shows the way. That got to every home through massive public infrastructure projects. And internet could too, far easier than water or sewer.