Edit: Even further, if they're launching 12000 of these couldn't that be a CDN network itself?
My understanding is Cloudflare's service works this way. I believe this would be a good partnership between both companies.
I'm guessing the other approach is similar to Netflix's open connect. Where Netflix is given the option to run what they normally run on their open connect boxes but in a virtualized environment on the satellites themselves.
Now, I know that wouldn't seem all that practical if the service was seen as something anyone could sign up and buy because it isn't like these satellites are the same as EC2 instances and it isn't easy to just rack a new one but my gut feeling is that a very tiny portion of content is a substantial amount of bandwidth.
At any rate, it's mostly about the bandwidth each satellite has to route. I don't know what the likely number of subscribers for any one LEO sattelite will be? Will it really be on the order of 100 million notalso served by 4g cellular, dsl and other broadband?
Say for new York state its a large area and population total but the area where you might want/prefer satellite service isn't very densely populated?