There are scant details about what the launched product will look like in practice, but keep in mind that urban and suburban areas are spoiled by high-speed 4G LTE and wired gigabit. The vast majority of the US, by land area, has to chose from dial-up and very expensive pre-Starlink satelite Internet service. Even 1 Mbit is a huge improvement over 56 kbps.

I'm haven't looked into the economics of running fiber everywhere, as compared to launching an extensive constellation of satellites but I will note that SpaceX has the competitive advantage of having at-cost access to reusable rockets, compared to an outside party paying SpaceX market rates for transit to space.