Yes, although there are rumblings about other locations. I can tell you that if it does 'decimate' the entrenched carriers they will go thermonuclear as well (so Google ends up opening another front in the legal wars) You can already see some of the tactics where cable companies have convinced legislatures to make it illegal to allow either public funds to be spent on infrastructure or to allow non-contracted third parties into a region.
No way to know. This is a pilot program. Running fiber to the home cost effectively is as much a political challenge as anything else. They're hoping to blow the doors of in KC to then help make things go more smoothly in other cities.