The low latency is also a requirement to receive FCC subsidies related to rural broadband, e.g. see https://www.reddit.com/r/spacex/comments/h04on0/fcc_just_vot....

Have heard (IIRC in https://theamphour.com/518-satellites-and-evs-with-joris-aer...) that this could have been part of the reason for Starlink's decision to have their satellites in a lower orbit.

The subsidy angle is also of course a familiar playbook across SolarCity/Tesla/SpaceX etc.