From the article: "SpaceX would need permission from countries to operate the service, a process that could be difficult, if not impossible."
Yep. To operate in many countries an ISP has to block access to a lot of content. It differs greatly from country-to-country. Would they really get involved in that? That would mean taking orders from governments all over the world and implementing blocks per those orders. Or would they forget about providing access in those countries? That's a large number of countries.
Added: Forgot to mention one of the biggest obstacles to getting permission in many countries: surveillance. Beaming directly from a user to a satellite that relays to a ground station in another country is going to bypass local surveillance.
Another addition: Wikipedia article on internet censorship and surveillance http://en.wikipedia.org/wiki/Internet_censorship_and_surveil... Note some of the countries listed under "Pervasive censorship or surveillance": India, South Korea, UK and USA.