The latency and bandwidth are fundamental limitations of physics which are incredibly expensive to scale up compare to cable and cell towers.

Latency is theoretically much better because the speed of light is much faster in the vacuum of space than fiber optics. So the ping from continent to continent is better using a satellite network that transmit data to each other using laser light.

I suspect we could be moving the orbit of the satellites higher so we can reduce the insane number of them, while still have better ping. I don’t see a technical reason why bandwidth would be more limited in space than on the ground. It’s fundamentally easier to scale since you can just launch more satellites along certain orbits to add bandwidth.

The fundamental problem is of course privatization and the inevitable monopoly. It will never really be cheaper than land based internet, and so both will continue to coexist, so it just adds additional resource waste for no real benefit except to make some guy rich.