When CLECs stop basing their business plans on the subsidy provided by below-cost forced leasing of the ILEC network, I'll take them seriously. Non-facilities-based competition is a feel-good mirage Reed Hundt concocted for Al Gore's benefit.
Yes, there are some CLECs that richly deserved their melt-down. But the rise of MVNOs shows that non-facilities-based competitors are valid. In wireless or wireline service, an xVNO can add plenty of value, if only in providing less abysmal customer service, and less greedy and abusive terms of service.
So if a level playing field is so good, you should like structual separation. Remember, it is the shareholders that own the network, not unions or the self-perpetuating management at ILECs.