I have a feeling that a giant mylar balloon will be less reliable then this telescope for some reason
filled with h2 for budgetary reasons?
Fill it with H2. H2 + vacuum => bad vacuum but no combustion.
You would use the Starship to launch your balloon into a beyond synchronous orbit for several reasons. Avoid occluding communications satellites in synchronous orbit. Avoid atmospheric drag and debris problems in lower orbits. And by keeping the subtense low you minimize impact on earthbound observations.
Small thrusters, or possibly large gyros rotate the thing around so it can point anywhere, something Arecibo couldn't do and the Chinese one can't either. You could use perhaps 2/3 of the aperture without too much spherical aberration.
But on your point an army of metal beaters can build ground based alumimum mirrors for RF. Even higher frequency stuff if you give them the time and tools to do the job. But even third world wages add up. And the logistics of allocating panel shapes and interfaces to thousands of small shops would be an interesting problem. But the idea has merit because it is a hook to get funding from large NGO aide organizations. Wages, plus skills development, plus infrastructure development are all good carrots.
There are very few ideas crazy enough to throw out. The only question is which ones will develop the army to implement. Look back at cell phones. Think about the initial pitch. "We want to make a radio network that requires transmitters and receivers with 12 km spacing over the entire inhabited world. And build millions of the most complex radios that anyone can imagine. Why? So teenage girls can gab with their friends endlessly and lonely people can post pictures of cats." Sounds pretty crazy doesn't it.