https://www.satsig.net/latency.htm
You have to move the satellites closer to Earth to reduce latency - hence low earth orbit (LEO). You can achieve much better latencies, <20ms, and support modern networking applications.
https://arstechnica.com/information-technology/2020/03/musk-...
But when you reduce the height to LEO, not only are the satellites no longer geostationary, they also have a much smaller coverage area. So you need more satellites to cover the same area, and fancy networking to handle the constant hand-off between satellites.