I think the main goal is direct to phones rather than being an alternative to fiber. But it's also a very good option for people living in rural areas with poor service (shoddy DSL).
population crashing will have people concentrate around cities like what is happening in Tokyo because that is where all other services will be. Rural is economic poverty.
I don’t think it’s wise to pollute all of low earth orbit with Musk’s satellites, that area belongs to all of us collectively.