Latency and bandwidth. Latency could actually be better than fiber optics on the ground, since light is faster through a vacuum than through glass. A few hundred miles isn’t much in any case.
The improved bandwidth comes from the overall large number of satellites (each one only has to serve a smallish portion of the globe), and from their increased ability to use beamforming. I’m not sure what their beam spot size will be, but it could easily be less than a mile, as compared to the hundreds of miles for geostationary satellites.
Space may be a big place but Low Earth Orbit (LEO) aint so big and it is getting dangerously crowded. I present to youthe Kessler Syndrome.
And as this recent Wired bit goes into, keeping track of the increasing number of trackable objects is getting harder to do … and the many many more objects too small to track (even paint chips) can also do enough damage to start a cascade.
Yes, the concept is that these many objects should be designed to deorbit naturally … but the risk of a one collision leading to a catastrophic cascade is real, not tiny, and increases as LEO gets more filled up.