Reading this makes me feel good about Verizon. Here I was being annoyed with the quality of their tech support, while they're taking a loss to provide me with cheap ADSL. How wonderful. This is a prime example of capitalism at work. Verizon gains market dominance while I get cheap ADSL. Cooperation to mutual benefit.
I wonder if Verizon is really as stupid as you think they are. That is, I wonder if they really hope to achieve a monopoly in the ADSL market and raise prices to recoup their losses. Raising prices significantly above what it costs to provide the service would give birth to dozens of competitors, immediately working to erode Verizon's market share. Also, technology is steadily advancing, providing alternatives to ADSL which could send it the way of the dinosaur at any moment. Verizon must know that it's taking a gamble on ADSL which, even if it pays off (i.e., ADSL remains the chief way people connect to the Internet for years to come), will result in Verizon losing money.
I bet Verizon doesn't plan to make money from ADSL at all. Rather, their presence in the area is for the purpose of building up their brand. Verizon wants to be a player in the tech industry, and what better way to earn the reputation as a serious player than to become the best ADSL provider. That reputation is more valuable to Verizon in the long run than the entire ADSL market. That's what they're after.