Isn't the lower orbit even better for them in terms of latency though? So long as the orbit doesn't decay faster than the planned 5 year life span of the sats, it's actually a win.

The lower orbit means the satellite coverage on Earth is smaller now, so they need more satellites to compensate for delivering the same capacity in a given area. It's better in terms of latency, but it's not a significant difference.

Very good point, thanks for responding.