There was no overt indication that the balloons were spotted earlier.
https://www.canada.ca/en/department-national-defence/news/20...
https://www.canada.ca/en/department-national-defence/news/20...
No, the balloon was tracked when it entered Alaska on Jan 28 https://abc7news.com/where-the-chinese-surveillance-balloon-...
And there were suggestions they might also have been used elsewhere, not just in the US/Canada.
As for what intel they could collect - a payload of that size would be equivalent to an airliner full of ELINT systems, rather like the US Rivet series. So that would include possible decryption of comms, and potentially precision mapping, analysis of traffic patterns, tests of local backdoor access, and so on.
Not all of that is easily done by satellite.
If it isn't an immediate threat that you have to stop, why let an adversary know your capabilities (that you can detect them).