Have you opened the cover? My "whole box" is around 14x14x6 inches hanging in my garage. The actual ONT itself within it is about 8x4x2". The rest is the extra coiled fiber and the backup battery. Depending on how you wanted to package it, you could make it significantly smaller. I also have FIOS. The new box is actually slightly smaller than my old box as is the ONT within the box itself (old one got fried in a power outage).
I don't know that in an urban setting it necessarily makes the most sense to do curb side ONTs instead of FTTH. However, in suburban or rural settings it probably does.
Stringing along the poles in my neighborhood and hanging an ONT on the pole going to the telephone wire would have probably reduced the cost of deployment by at least a good quarter or more rather than the hundreds of feet per residence that the fiber had to be buried (about a quarter of the homes have electrical and telecom run open air from the pole to the house, the rest are buried from the pole to the house). Then compare it to some of the homes near me, that I may or may not have FIOS, where they are legit farms right across the road from me, where it is probably 1,000ft from the main residential power pole to the house. Granted, that is strung there as well, but it saves 1,000ft of fiber, plus the time and effort to string it along the farm's poles carrying their electrical and phone to the house.
FTTH is obviously far superior, but I can certain see an instance where very high speed internet over POTS could be a good thing in terms of saving costs on deployments and hopefully encouraging deployments at least in more rural areas.