I was a teenager at the time, and what I remember, above and beyond pricing alone, was just how firm a grip Ma Bell had on our entire civil communications infrastructure. The Carterfone decision was still a relatively-recent thing with radical implications -- you mean I can plug stuff besides phones into the wall socket?! -- and it was definitely time for things to open up further.

Intra-LATA calling between neighboring towns got a bit more expensive for a while, yes, but long distance almost immediately became much cheaper. It was like the move from film photography to digital -- suddenly everybody was taking photos freely, because the marginal cost was almost gone.

Post-breakup long distance calling became something people weren't inherently reluctant to use, and that was a big deal. Especially with the concurrent rise of BBSes. There's no way I'd ever agree that we were better off with the status quo.