See the scatterplot of debris for the Chinese collision test of 2000: https://en.wikipedia.org/wiki/Space_debris#/media/File:Gabba...
See this video for evolution of debris and altitude over time: https://www.youtube.com/watch?v=mQT5aMa_7iI
The lowest point of the new orbit (perigee) is guaranteed to be no higher than the point of collision. Fragments after the collision have no further propulsion, so their new orbit must initially include the point of collision, and can only decay from there. This can also be seen on your scatterplot.
Moreover, the time to decay is most strongly influenced by the perigee, as the atmosphere is the strongest there. If a satellite on an low orbit (decay in decades) explodes, those fragments that "reach a higher orbit" will still (due to the low perigee) decay back to a near-circular orbit in decades. A collision can increase the lifetime for some of its fragments, but not by multiple orders of magnitude (unlike a circular higher orbit).
Your video link also nicely shows that fragments with a low perigee will decay quickly, no matter how high their apogee is.
Also it was literally the worst possible collision being an intentional head on collision. Satellites accidentally hitting each other on orbit are very unlikely to hit each other head on as it is very uneconomical to put satellites in a reverse orbit that low (there is a reason why we do rocket launches towards east if possible)
There are many factors in whether this matters practically, so I'm not passing judgement on that. None of this is specific to Starlink.
The time to deorbit is not linear. So this 500km orbit is fine while 700km orbit would get us ~25 year deorbit time. 800km over 80 years and so on.