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I agree.
I'm going to disagree as to whether electrical perfomance montoring gives you enough information to figure out what has just gone wrong in you network. Metro networks are typified by a large number of nodes, at which traffic is added and dropped. If we follow you model, we would have no visibility of the channel once it had entered the optical domain, and we would only see it again at the receiver.
Which is not very useful when your channel disappears from the receiver - and you have no clue where it went. It is very useful to know which nodes can see your channel, and therefore work out where it went. Electrical perfomance monitoring is just not going to give you that information.
You argument is exactly why ONI and Nortel are selling a lot of DWDM metro kit - because the optical perfomance monitoring is good enough to allow you to operate a real network with carrier grade reliability. Sorry it doesn't fit your low cost idea of a data network, but if you want reliability you have to pay for it somehow.
P.