The video in the article you linked is not a good example of the long term impacts. The satellites were at a lower orbit than their final orbit and not oriented the same way they will be once in their operational orbit. Once they reach their final orbit, which most of them have now, they will be far more spread out, higher, and all around much harder to identify. That and SpaceX is actively working with astronomy groups to try and lower their impact.
Even if they are easily visible, so what. Should we not build roads because then our children wont be able to see things the same as we saw them? It's progress, and really good progress in this case.
All of that aside, I fail to see how it makes a dystopian future. A quick Google says the definition of dystopian is "relating to or denoting an imagined state or society where there is great suffering or injustice." I fail to see how internet providing satellites are making people suffer or feel injustice. If they work out they will bring internet to a substantial number of people who cannot get reliable and cheap access to resources you and I take for granted every day.
SpaceX's whole goal is lowering the cost of access to space. Again assuming they achieve that goal to the degree they want to, and Starship is sure looking to be a giant step in that direction, then deploying a space based telescope very well might just be the better option. You can basically make it as big as you want and shipping it to space could be cheaper than shipping it to some random place on this planet to be built.