The CPE is just a network attached system with a defined protocol that allows me to access a service.
The CPE includes information which they deem to be confidential (such as for example outer and inner VLAN tags); Whilst we aren't too strict on VLAN information, we have many, many customers that does not even know what it is. Never mind when it comes to QinQ, or MPLS, or things like that (which is frequently extended right up to the CPE). As a rule of thumb we also don't give access to our CPE devices, but we do not deny it when it is requested (although we make it very clear to the customer he's on his own if he starts fiddling).
PON networks, I can almost guarantee you, you'll never, ever, get access to the CPE. There's major confidential and security information in there which would affect the security and performance of the entire PON network if fiddled with...
The CPE extends to their network as part of their management, and they more than likely use specific functionality built into the CPE to test your circuit (this would be especially true for PON). Remove the CPE and remove their access to the CPE, and they can no longer provide you with adequate support, and it becomes a he says, she says pissing contest with you saying you have a problem, and they saying that they can't replicate or see the problem to fix it;
Whilst YOU may know what you do in terms of replacing the CPE, other's don't. By allowing one (or more) to use their own CPE you set a precedent that everyone can (or would want to attempt to) use their own CPE. Now you sit with thousands of devices that 1) you must have experience with, 2) that you must support, and 3) other users (unlike you) that do not know what they are doing, and THEY end up breaking things;
All of the above, creates a MASSIVE burden in terms of faults/support, and sets the tone of absolute chaos.
It's not about not trusting you, or you not knowing what you're doing. It's about setting a "norm," enforcing that "norm" to EVERYBODY, and to ensure that the ISP has the required tools (built into the CPE) in order to provide adequate levels of support. With large networks, scaling is key. With scaling, keeping everything the same, as far as possible, is key. That, includes the CPE, and the management thereof.
Or... Do you want your Fiber to move to the same situation that DSL is in, whereby Telkom says its the ISP, and the ISP says its the exchange?
EDIT: I can just see consumers maxing the TX power on their optics and blowing SFP interfaces on the ISP side. I can just see end users staring into the ends of fiber optic cabling whilst it's lit, nuking their eyes and then coming to blame the ISP... No, keep the consumer well away from the CPE is what I'd say.
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