I wonder how long they'll stay up for. With the lower orbit, I suspect they'll have a short lifespan (unless they have a motor onboard to push them along).
Do you see yourself able to fully automate that process? The Falco -> slack notification -> manual ban doesn't sound like it will scale very well (but a nicer workaround than outright removing the free tier!).
It's not just about whether the US government trusts US companies more than Chinese companies; it's about gaining access to that data.
You can issue warrants warrants for your own jurisdiction, within your own country. Once data crosses country borders, it's much harder to get access to. The US (understandably) wants this data within their own country. Similarly, China also wants this data within their own country.