Definitely expensive, but it is likely still much less expensive than putting all of the satellites in to the higher orbit. It takes a lot more fuel to get the satellites in to the higher orbit, as well as still having enough fuel to get it back down to de-orbit the satellite.

Plus, in the ~1100 km orbit you are getting in to the lower Van Allen belt where the radiation will degrade electronics much more quickly. This can be mitigated with radiation-resistant parts and more shielding, but it adds a lot more cost.

There are new technologies like air breathing ion engines and electrodynamic tethers, which have the potential to sustain low orbit satellites for years.