Good question. The vast majority of satellite communications today are conducted via geostationary orbit, 35,786 km above the earth. This is the distance at which a satellite orbiting around the equator moves with the same velocity as the surface of the earth, keeping the satellite in a fixed position. This is good for communicating via the ground, since you can just set up your dish pointing in the direction of the satellite. Additionally, such a satellite can cover a wide swath of the earth since it is so far away; see, for example, the coverage of AsiaSat-8 (http://www.spaceflightinsider.com/wp-content/uploads/2014/08...). The disadvantage (especially for internet) is that the round-trip time of a signal at the speed of light is on the order of 250 ms.
As described in this article, the SpaceX constellation would be in a much lower orbit. The advantage is a much faster ping time (say, around 10 ms). The disadvantage is you need a large number of satellites to provide continuous coverage for the entire earth...but that's less of a disadvantage if your company also launches rockets.
As a rocket combustion chamber grows larger, so does the chance of a destructive combustion instability. The Russian solution was to split that up into smaller chambers resulting in multiple nozzles. It was a practical solution to a challenging engineering problem.
