Does Palo Alto's FttP rejection hurt the NBN?

News that the city of Palo Alto, California has all but rejected the idea of pervasive fibre to the premises (FttP) will be welcomed with open arms by opponents of the National Broadband Network (NBN) — but is it an indictment of the whole idea of an FttP NBN, or a validation of the unorthodox strategy being taken by NBN Co?