What are the regulatory/legal gains? Lack of jurisdiction means open slather?
What are the national security gains? Redundancy and resiliency by each satellite being a "micro-compute" connected by high speed laser links? So more resilient to attack?
Why do it at all?
If data is downloaded illegally from space, stored in space and model trained on it... it will be a mess juridically if someone complain.
Same for model inference, it will be hard for a government to put controls on the model output.
It doesn't make sense right now, and won't for at least 5-10 years.
By which time, this current round of hype will have burned up ~$1T if it doesn't fall apart from the current internal contradictions and lack of market/customers/uses.
We're still on the uphill ride of the Gartner hype cycle, not even at the "Peak of Inflated Expectations" yet.