Something that bothered me, until I looked up some numbers: the air a VLEO satellite scoops up is presumably more or less at rest wrt the Earth below it--there could be wind and effects of the Earth's magnetic field, and so forth, but for practical purposes it would be coming at the VLEO satellite at about 18,000 mph, or 8 km/s. In order to produce thrust, it has to exit the back of the satellite at a significantly higher speed. It turns out that ion thrusters have an exit speed of 20--50 km/s. So I guess it's feasible.
More info in this Wikipedia article: https://en.wikipedia.org/wiki/Atmosphere-breathing_electric_... --which says the exit speed of this kind of ion thruster is 55 km/s (as tested in a vacuum chamber).