One word: latency.
And then there is latency.
Getting data from a satellite 30,000 miles away and then uplinking it back makes for horrid response times. Banish the thought of online gaming from your thoughts!
This new scheme of low-altitude satellites comes across as much more data, much faster. I imagine the difference of latency compared to standard ground-based fiber optics and wi-fi will be extremely small. Maybe too small for the average person to detect at all.