Any competent Electrical Engineer could tell you this plan was doomed to fail. The physics of how radio receivers work show that a powerful transmitter nearby would swamp/cover-up a weak signal source like a satellite transmission. Any ham radio operator could have told you this too.
So one of several things must be true.
1) The CEO of LightSquared didn’t listen to his engineers
2) He hired in-competent engineers.
3) He is stupid - which begs the question - how did all these other supposedly bright people put him in charge?
The Bush administration had their own version of this called Broadband over Power Lines. That technology in it’s initial implementation would have jammed HF signals across the world - and made the short-wave bands unusable.
The administrations get caught up in their own agendas and ignore physics, and practical engineering constraints. Don’t bother them with facts.
How is LTE on the 700MHz spectrum “doomed to fail?” Verizon Wireless has introduced it in over 100 cities. Now, it’s clear they are taking a more cautious approach to their deployment - Buffalo, for example, has not been activated due to interference from analog TV channels from Canada.
Thus, while I agree with (probably) all three of your points, I don’t agree with your conclusion, that it’s a plan doomed to fail.