The problem with satellite is that the current systems use GEO (geosynchronous earth orbit) satellites, at an altitude of 22,241 mi. This causes absurd latency, making satellite useless for any kind of interactive internet applications.
Alcatel is still planning a ~80 bird constellation of LEO (low earth orbit) satellites at an altitude of around 800 mi. for their proposed SkyBridge service. If it ever comes into being, it could definitely be competitive with current broadband.
Thanks for the information. I'd love to see satellite service give the cable and phone companies some real competition.