Forgive my lack of knowledge or experience on PON, but do the ISPs get the ONT serial number, or is that an FNO only thing (OLT to ethernet and FNO drops that detail in transit to ISP)?
I'm sure that DHCP scales easily and well -- easy and proven, even quite powerful. Also, that means the ASIC/network acceleration can work on the fairly low power routers to achieve the gigabit+ forwarding speeds. The support team may even have an easier time instead of having to walk customers through initial setups or factory resetting routers and having the myriad of interfaces to figure out.
I still get hung up on the captive portal authentication I've seen ISPs use: PPPoE is set and forget or go find the details in the password manager or email from years ago. The moment the ISP can ask to confirm the ONT serial, click, click, 1 minute later DHCP request gets DHCP offer and data just flows without intervention, I'll be happy.
Once the serial of the fibre ONT is the authentication method instead of a captive portal, I wouldn't mind DHCP much. The biggest struggle would be replacing the ONT for whatever reason, and calling[/logging client portal ticket] the ISP to say new serial number.