I would love to see that happen. Low earth orbit solves the latency problem with satellites, and reusable first stages (as well as potentially piggy-backing on other launches) may solve the cost problem. What about space on the wireless spectrum though? My understanding is that it's pretty full. It seems like SpaceX will either need to use something completely different (like laser transmission) or make a deal for use of some of the spectrum.
I can't wait for this to fuck over Comcast and every other last-mile monopoly acting like jerks to their customers.