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It can absolutely be weaponized. That's one of the big reasons we stigmatize ASAT weapons tests so much.

But grounding humanity is bad for everybody. GPS and weather satellites are nice.

Sure, but it’d be a hell of a lot easier for said actor to attack infrastructure on the ground, like an oil rig, and the powers that be don’t take kindly to that sort of thing, either. Before anyone could do any outsized damages they’d have their manufacturing lines, launch platforms, and any citizen with an aerospace degree pulverized.

Any country that has the technological capability to do so also has its own satellites in orbit, so it would end up harming itself too.