There are lots of problems with satellite; they're expensive, hard/impossible to maintain and upgrade (software apart), they don't scale (they're tiny in comparison to a data centre), power, resilience and redundancy are problems and because of the round trip distance from satellite to earth station, they have very high latency which makes real time applications like telephony and multiplayer games unworkable. (Until we find a way to send data faster than light speed, this can not be fixed.)
Their strengths are in delivering asynchronous media using single transmissions to many points simultaneously - ie broadcast. Using them for many individual, independent, streams ie narrowcast is very inefficient. I don't see satellite as a credible solution.
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