I don't see why cease costs should be a thing unless there's engineering effort involved to recover equipment or disconnect things. I don't think it comes from Openreach, it's a product put there by some wholesale networks.
I would tend to agree with the principle that they should apply where there's a cost. I think it is Openreach who charge cease charges. Maybe other altnets don't but I do believe it comes from OR, although not 100% sure (it could be BT Wholesale but I don't think it is)
On the point that install charges might introduce barriers to switching, there are costs associated with someone doing the work of laying the fibre through your garden, supplying and fitting an ONT etc. and I don't think it helps anybody to pretend they don't exist and to hide them in the monthly fee. If e.g. £80 up-front is too much then as suggested, the option to spread it over the contract term could be welcome.
Providers are free to build them how they want. The fact they avoid setup costs comes down to the fact most people dislike paying them. There's nothing stopping providers in a competitive environment doing that.
Evidence is there's a lot of "first X months at £y then remainder at £z" deals which shows people look at initial cost more.. Arguably not allowing price increases beyond inflation would probably be a better way to protect consumers.
The way companies are valued comes down to recurring revenue, so if you charge free setup and a higher monthly it's probably worth more to the providers' too and investors like that. I imagine that's driving a lot of this too. The 'new customer' deals are also just that - an acquisition cost to get a customer on board.
As for running fibre - the charges may apply even to just re-activating an existing fibre.. Maybe for simplicity.
I personally prefer paying setup and lower monthly without contracts - I generally don't contract long for most services but I don't switch because of a tiny saving either.. as long as service is good, etc.
I don't think cease charges make sense for many reasons including incurring them when you move house, etc. As for setup vs monthly I think that's for market really. I'm more worried about price increases mid-contract for consumers.
seb