Actually, this doesn't have to be a solution for the entire set of issues they're facing, just for some. One of the problems this solution could solve, is that regular police wouldn't be able to go in and confiscate servers. If their website goes down, nobody can access it, not the ones in the countries where authorities get involved in enforcing IP, nor the ones in the rest of the world. So even if it's not a "silver bullet", it's still helpful for their activity. Plus, it's damn cool. :)
I see the following advantages to this solution.
1. Don't know exactly how copyright enforcement really works, but I'm guessing the military doesn't get involved in this kind of activities, and the police doesn't have the required equipment to destroy a satellite. Putting jokes aside, who's going to assume responsibility for shooting down a satellite? I doubt the MPAA and RIAA will buy the equipment for it, and I don't see the military getting involved in that unless it really becomes a problem of "national security".
2. They could set up multiple receiver points down here, in various places all over the world, and if one is "put down", they'd still have the others.