Earlier quoted context omitted.
Why would HFT even consider using it? They are located as close as possible to the exchange they operate on, not across states or halfway across the world.
Light travels 47% slower in a fiber optic cable than it does in the vacuum of space. [1] [1] https://youtu.be/giQ8xEWjnBs?t=288 (the whole video is worth watching, but that timestamp answers your specific question.
I watched it -- no it doesn't :) It is comparing fiberoptics latency with straight line light propagation. So the worst case scenario of non-existing inter-satellite communication could easily be worse than fiberoptics.
But I guess if the hedgefunds knew exactly which packet travels in a straight line, they could send one packet via Starlink and others via fiberoptics.