Anyways, it is my impression that space is kinda big..
Anyways, it is my impression that space is kinda big..
This is, at best, misleading. The objects that have to keep clear of each other are (effectively) points, and they can share orbits with different phasing. The most obvious real-world example of multiple objects sharing an orbit is geostationary orbit.
So the obvious case for geostationary orbits is significantly better than for LEO.
Nevertheless, LEO isn't bad. A height of 400 km translates into a circle of about 42,655 km (orbital length of ISS according to NASA). That is enough to park several satellites in without them being parked bumper to bumper.
Because it encourages squatting and low-value rent seeking from the first people to get there.