I.E. Are US ISPs, particularly big ones like Comcast, required to geolocate ISPs to the state where the person is actually in? What about mobile ones?
Where I live (not US), it is extremely common to get an IP that Maxmind geolocates to a region far from where you actually live.
The law in question requires "commercially reasonable efforts"
Calling geoip databases "surveillance capitalism" seems like a stretch. It might be used by "surveillance capitalism", but you don't really have to surveil people to build a geoip database, only scrape RIR allocation records (all public, btw) and BGP routes, do ping tests, and parse geofeeds provided by providers. None of that is "surveillance capitalism" in any meaningful sense.
Phone number assignments are mostly public, you don't really need to pay for this information, but there are certainly those who will sell it to you.
Of course, phone numbers don't really tie you to a rate center anymore, but a rate center is often much more geographically specific than an address for a large ISP. What I've seen near me, is a rate center often ties the number to a specific community. Larger cities often have several rate centers, smaller cities may have their own or several small cities may have one. Of course, phone company wiring tends to ignore municipal boundaries.
On the other hand, most large ISPs tend to use a single IP pool for a metro area. Not all large providers do it that way, of course, and larger metro areas may be subdivided. You can't really ping time your way to better data there either, most of the last mile technology adds enough latency that you can't tell if the customer is near the aggregation point or far.