More like 300 yards, but that doesn't really change your problem. Do note that with high gain directional antennas a line of sight distance of a few miles can be done too.
Well, you'd need 1 router and many clients, for each area covered by a router. That area would vary greatly, as 802.11g is a 2400MHz, and it simply does *not* go around corners or through trees, or anything else. If you can see it, it'll go.
Hence an Access Point sitting on a 300 foot tower located on the highest ground around... will cover a huge area. But an Access Point in your basement might have trouble covering your second story rooms. And every possibility between those will be encountered.
The answer to that, is simply add more units configured as Access Points...
Sure. All it takes is money.
Sure, with lots of money!
That's what The Internet is. You're 2-3 decades late to get in on the ground floor; but I gotta admit you have a *big* imagination!
There are commercial companies providing ISP service using wireless with coverage for entire cities. That takes some serious investment in engineering and equipment.
A small network around a neighborhood could be done for a few hundreds of bucks. Some of the more popular 802.11g radios can be used as Access Points, Clients, Routers, Bridges, Point to Point links, and probably something I'm not remembering. Basically one model of that type (for example a Linksys WRT54G) could be used to cover a large area by using many units. You would need one location with access to the Interent. Then you need however many locations for Access Point units as required to provide coverage to everyone. Then you need pairs of units to work as Point-to-Point links to connect each of the Access Points to the location with the Internet connection.
At less than $80 each for the radios, you can engineer yourself a network that only a few years ago would have cost hundreds of thousands, or even millions, and do it for several hundreds of bucks.