SpaceX recently updated their plans to put most satellites between 300 and 400km. That ensures a quick deorbit of the satellites and debris and cuts down the ping times.
Plus, in the ~1100 km orbit you are getting in to the lower Van Allen belt where the radiation will degrade electronics much more quickly. This can be mitigated with radiation-resistant parts and more shielding, but it adds a lot more cost.
https://mobile.twitter.com/TMFAssociates/status/106076080100...