No. If you have enough inter satellite links, it is almost always better to use those unless there is congestion. It's simple math. You misread my other respon

No. If you have enough inter satellite links, it is almost always better to use those unless there is congestion. It's simple math. You misread my other response. The reason I believe SpaceX will not offer 1G plans, except at a ridiculously high price, is because it's not profitable. GEO satellites could do it now if they wanted to, and their cost per bit is far lower than SpaceX. Nobody has ever said physics is limiting this. Just because they were able to land a rocket doesn't magically make an entirely separate section of the company capable of doing things that haven't been done before. And the technical parts aren't even the biggest argument. The biggest argument is still that if they do not get government money, it is not financially feasible. And I don't know what you are talking about with being co-located next to "exchanges", since that is extremely vague. The known POPs they are using thus far are not major ones. And because The satellites are so close to the Earth, they need many, many gateways in rural areas to keep the bandwidth high.