So we should take away something that is necessary to someone helping themselves (have you tried to apply for a job or take a class without using the internet recently, it’s required), just because some people don’t care about living in squalor?

If all they are doing is “loitering” to use the internet, then they aren’t doing anything wrong. It sounds like the problem is simply the number of people and the neighbors didn’t approve. In that case, the truly win/win option is to provide greater access points to free wifi so people don’t have to congregate in one small area. This outcome only hurts people.

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.