The star link network is actually remarkably cost effective in getting internet access to rural areas. There's a reason that these areas still have poor connectivity: it's just not cost effective for anyone to build land based infrastructure there.

SpaceX spend a few billions on StarLink. But if you look at how much network operators have spent over the years on cables, base stations, etc. it's not all that much for a network that offers high bandwidth access all over the planet.

Adding 100K more satellites is going to make Star Link a direct competitor to many of these operators.

Eh, I think the economics of rural areas play a role as well, and this “wasteful” way is actually very well suited for serving that long tail.

It has nothing to do with competition. You could have as many competitors as possible and no one is going to put a cell tower up in a remote location.