Is there any hope at all of getting 10 mps speed in my aree EVER or should we just give up and go to cable?
Several points. Faster DSL service is for the most part related to the length of the copper pair that connects your residence to the central office, and to a lesser extent, the condition/quality of the copper pair. If you'd like to post your transceiver statistics, I can give you some idea whether faster DSL service is even possible for you. In some cases Verizon doesn't sell faster service because they are out of capacity in the central office that serves you.
As for FiOS, Verizon has decided to go slow on expanding the network for the moment. The secondary issue in many markets is in order for FiOS to be paying proposition, Verizon needs to be able to sell FiOS Television services. In most communities that requires a franchise agreement with the local government. These can be difficult to negotiate, or obtain at a reasonable cost because a number of local governments already have 'sweet heart' deals with Comcast, Cox, CableVision or other Cable operator. No Franchise agreement, No FiOS.
Suffices to day that the local cable operator will usually do everything within their power to block a new entry into their market. The Satellite folks don't need to use telephone poles or public easements, so they don't need a franchise agreement, and the FCC has effectively blocked the enforcement of any ordinance or other regulations to limit or prevent the installation of a Satellite dish.
If you really want faster service, and are prepared to pay more (a lot more), you can always get your internet service via a Sat based provider like HughesNet, WildBlue, Starband, etc. At some point you may also be able to get better than 1.5mbps service via a 4G mobile network connection, but like Satellite, you ARE going to pay for the honor. In addition most mobile network and Sat Internet providers has at least some download limits associated with them.
Franchise agreements sound like a monopoly to me and I have to wonder how legal they really are.
As I stated, the fiber lines are not that far away so the infrastructure is there, but the local cable company has a monopoy because of the franchise agreement with my town, which I see expires in 2014 if the town chooses not to renew it.
I can get 25 MBS cable internet for about the same price as my 3 MBS DSL service now so it seems that cable might be the better option for me. I would much prefer to stay with verizon but it seems I may have no choice if I want something faster. I would never go with satellite service simply because the prices are outrageous.