To be fair, the network being crushed by high demand is extremely unsurprising. Cellular networks have always had this problem in dense areas, where it’s no way you're reaching the advertised speed. This is mainly due to the available channels being shared by everyone in a relatively large area, connected to the same cell. Which is mitigated somewhat by setting up more cells with shorter range for a higher cell density in cities.
How could a satellite based network ever scale? Where you have what, a handful available cells to cover an entire state?