I've been to places that had free municipal wifi, mostly at libraries and bus stops. It seems like a small service that is generally helpful to people without access to their own wifi. I think the better solution is to have more places with free wifi at night so people don't have to congregate in the one small area.
There aren't many places the unhoused are allowed to exist in public and cutting them off from essential services only makes it harder for them to better their situation.