Except it's no longer only in rural areas, grid connected utilities are now costing more than being off grid in the cities too. Starlink residential 100 Mbps is cheaper ($69/mo AUD) (ignoring hardware and setup costs) than 50 Mbps fixed line internet ($80/mo AUD). Depending on location, home solar + batteries will usually work out cheaper than being on the grid within the battery warranty period too.
Densely placed city users would strain the system, but cities also favor wired connectivity.
That makes the two complimentary. Wired makes the most sense in urban formations, satcom makes the most sense in Bum Fuck Nowhere.
I wouldn’t rule out the grid just yet.
Your comparison point is also a bit weird to me. If I want a decent speed, my choices are fixed wireless NBN at ~250Mbit (400 in theory, 250 in practice), or Starlink at ~200Mbit, and they cost around the same.
If I were just a few km closer to the city I could get 500Mbit fibre for ~$90 a month.
So while it's definitely not out of the range of other plans, I wouldn't say it's definitively cheaper. And I wonder if the recent price drops are down to people not wanting to have much to do with Elon Musk any more. I know it's worth a few bucks a month to me not to be a customer of his.
“When in Wisconsin.”