For those saying they should be geostationary keep in mind that orbital periods are dictated by distance. You can't just put something in LEO and make it geostationary. So for it to be geostationary it needs to be much further out. Not sure if there's other factors like mass that also play into this, but essentially to get an orbit you need to be going a certain speed and that dictates how far you end up from the planet. This of course changes between different planets because of gravity. (I think?) Geostationary is that sweet spot where you just happen to be matching the Earth's rotation. You of course need to be at a 0 degree inclination, though if you're not you just end up doing a figure 8 pattern over an area.
That said I think they should do a compromise, do a higher up orbit that is not geostationary but further enough out that the satellites get a much larger LOS. Then they don't need as many. Of course you get higher latency, but still less than geostationary ones.
At least that's my understanding of it... I'm not an expert on orbital mechanics. I know enough to get stuff in orbit in KSP.
I think their end goal though is to compete with even fibre optic internet. In space, latency between satellites is actually LOWER than fibre on the ground, because it's in a vacuum. Glass slows down the light a bit.
I'm now curious if anyone will ever come up with vacuum evacuated fibre optic cables at some point, it would basically be a tube with a mirrored inner surface that has all the air evacuated out. That would be quite a feat of engineering though and probably not worth the cost.