Satellites definitely get sandblasted to some extent; here's a hole made in the SolarMax satellite. https://en.wikipedia.org/wiki/File:SMM_panel_hole.jpg
The ISS cupola got hit and repaired, too: http://www.spacesafetymagazine.com/space-debris/kessler-synd...
Larger debris does tend to come from satellites. And things such as satellite collisions cause a noticeable effect on the number of objects (of a size that we can track) [1].
[0] https://www.nap.edu/openbook/0309051258/xhtml/images/img0001...
[1] https://en.wikipedia.org/wiki/Space_debris#/media/File:Space...
While "sandblasted" might be hyperbolic, micrometeoroid and orbital debris (MMOD) is a known risk to the ISS and they have a variety of shields to try on protect it.[1]
[1]https://www.nasa.gov/sites/default/files/files/E_Christianse...
Why hasn't the kessler syndrome started already? Why has the ISS not been sandblasted after 20+ years in orbit? Those are great questions.