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I think some justify it as SpaceX plans to offer hosting in space, and then use Starlink to distribute it.

That's what the IPO salesman and pamphlet said anyway.

Can you provide a good example of something that is currently hosted in space and distributed via satellite?

GPS..

You believe that GPS is hosted on servers in space?

Technically, yes. Obviously stretches the normal definition of a server, but it is a computer controlled system "serving" a mostly digital signal.

https://www.baesystems.com/en-us/article/gps-iii-satellite-l...

What people are describing here is the colloquial definition of "server", being compute hosted in space. Not a broadcast signal that is interpreted on Earth.

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