I think this makes a lot of sense - this would be sufficient for an island to have its own ISP. It probably doesn't make a ton of sense for places that are on the mainland of a significant country, but if you're an island community somewhere in the pacific or off the coast of some country, it's this or bust. It also makes sense for remote research or military outposts.

Having a big pipe that then fans out with conventional technology is almost certainly a better way of getting connectivity to a town or similar. That way the bucket of service is much more efficiently allocated. They can also do things like put Netflix caching boxes or other CDN boxes in a site like this.