From what I've read, there are already 500K pieces of debris larger than a marble in LEO. 20K of which are larger than a softball. And millions of stuff that is too small to track. So from the debris point of view, I suspect it won't have much of an impact either way.
Latency is far less important than bandwidth and availability when you're talking about areas that have little to no infrastructure for telephones, never mind internet. Much of the interior of Africa comes to mind. Or Antarctica (limited satellite service currently, as there are no cables to the continent). Even some of the very rural areas in more developed countries. The existing satellite network only has so much bandwidth.
The other issue that comes to mind for some is that of information control. How can a government practically exercise control over the internet if the communications are simple, relatively cheap, localized transmitters directly to space?
And, of course, this could result in satellite phone service becoming cheap enough for the masses to use. Good for us. Maybe bad for the existing services reclaiming their investment.