From what I understand it's the final form of decentralization. The idea is that a bunch of user/community owned computers communicate with each other and act like an alternative community based internet provider. Big cities already implement some form of this like NYC.
"paranoid" assumes that it's unjustified suspicion of someone or something. However it's a well known fact that ISPs may spy on users as it's been exposed to happen in the past...
@BaalInvoker not paranoid, beyond observation, straight up control over who gets access and not. CBDC social credit system depends on centralized structures