With multiple base stations that's the minimum latency to get across the street.

However, the added latency is not necessarily that bad vs landlines. Picture a triangle with the satellite at the apex and the goal at the other side. On the other hand if their base station was further from the network than your house then things get significantly worse.

Also not taken into account is that light travels about 30% slower in a fibre optic cable than in space.

I also failed to account for slant angle for the distance, which could add a few more milliseconds to each leg in the worst case.

With so many satellites in the sky, I think those effects will be exactly as you said, a few (<10 ms) milliseconds in the worst case, depending on how aggressive the hopping from sat to sat is.