Harvard Square used to have a very fancy internet cafe, Cybersmith, "Building community with technology". It opened in 1995 and went bust in 1999, a couple of years before the great .com bubble burst.
These days, an "internet cafe" is any venue with refreshments and WiFi.
Correct. It went bust in 1999 because more people own personal computers at home and hence access to the internet. That is not the case in Europe and most of the world and thus they still go to the internet cafes to access the internet. The media paint the internet cafes in such a romantic way where in reality it is just a need for people who do not own computers and internet services.