Not dialup. Just bad last-mile wiring, as far as I can tell.
Apparently such service is still somehow available; I found https://www.dialup4less.com with a web search. Sounds more like a novelty at this point. But "real" internet service still just doesn't work as well as it's supposed to in some places.
Canada. But yes, I've heard the stories about Germany, and Australia too.
In point of fact, I can fairly reliably download at that rate (for example I can usually watch streaming 1080p video with only occasional interruptions). The best case has been over 20Mbit/s. (This might also be partly due to my wifi; even with a "high gain" dongle I suspect the building construction, physical location of computer vs router etc. causes issues.)
Yes, even in metropolitan areas in developed countries in 2025.