lots of industrial processes produce waste heat that can't easily be turned into energy, so the comparison isn't to a boiler, but to not having the heat.

It is true that the heat can be used if it is there anyways. But usually not in a big city-wide network. Instead a more localized, larger consumer is far better, because running the hot water network is far too expensive. For example, large producers of heat like data centers, dairy processing or chemical plants around here deliver their heat to public swimming pools, schools or greenhouses that are intentionally built nearby.

Even the grandparent's article says so if you read carefully: "A large portion of the town’s own buildings, including the municipal school, town hall, and library, are connected to the district heating network.". They didn't even attach all of the public buildings. Not to mention about the rest of the town.