Basically I have an "I'll believe it when I see it" attitude. I don't think this proposed satellite service has an obvious natural customer base. Wouldn't mind being wrong but I just don't see it.
It very much depends on what they manage to do for the customer end. If they perform some voodoo when doing antenna design (MIMO included), the customer device could be the size and formfactor of a smartphone. From what I've been hearing out of the RF people, this is not out of the question. Between MIMO antennas on the ground and a phased array on the satellite, some dark magic becomes possible. Whether or not either SpaceX or OneWeb manages to implement such a thing remains to be seen. If they do.... It opens up many many possibilities, not least of which is competing with cellular carriers (another market where there's little love lost from customers).
You have to remember, in LEO, where an individual satellite completes an entire orbit in ~90 minutes, the ground station does not have a dish. Dishes are for talking to geosynchronous orbit, not low earth orbit. GSO satellites stay put, from the perspective of the ground, so you can aim your dish and be done with it. LEO satellites zip past you so quickly that your uplink is being handed off between satellites at least every half hour, and it could be as often as every few minutes, especially with a constellation as gigantic as the one SpaceX intends to loft. You could use a dish to talk to them, but it would be a hazard to anyone nearby as it tracks across the sky, then abruptly reaims itself to switch satellites.
In addition, LEO means the satellite can detect your transmission vastly more easily. Radio suffers from the inverse square law, so a satellite 1100 kilometers up (SpaceX's intended altitude) can hear you much more easily than a satellite 35786 kilometers up. The power density price of 1/(34686)^2 is brutal.
So no dishes. Smartphones, not dishes. Lots more potential customers.
I agree, Comcast (and every other cable provider) can trivially boost the bandwidth available to their customers. We know for a fact that all of their whining and crying about people daring to use the service they paid for is pure theater. They're fantastically profitable. Providing 10 times the throughput is just flipping a software setting. They know it, and I think they're counting on it for just this eventuality. It's their ace up their sleeve for smashing a competitor, just as you say.
For some people, that's enough to get them to stay. But consider this. All any competitor has to do is be something less offensive than a freewheeling asshole and if their product is even remotely broadband, it WILL attract customers who already have a broadband ISP. Because most of the existing broadband ISPs are freewheeling assholes. Add on VOIP calls on a portable device the same size and shape as the smartphone they already have? That works worldwide, with no "can you hear me now" games outside of parking structures? There's a reason there's now more than one company trying out this business plan. The numbers work out, and there's a larger market than the purely unserved population.