While I've not completed my research, your conclusion seems to conform to the city's belief here in New York - that it need not provide a process for participation by individual Internet users in shaping the use of the .nyc TLD.
Assuming that's the case, that there's no clear responsibility on the part of ICANN or the registry, what responsibility does the At-Large have with regard to the needs of individual Internet users?
To me, it would seem ALAC's role is to advise ICANN, politely, that it botched things with regard to city-TLDs, and to suggest a roadmap for reengaging individual Internet users with the governance process.
Are you in agreement or have I missed something?