The latency is distance related, these satellites are in the Clark Belt to be geostationary. the round trip, will take about 1/3 of a second, due to the distance involved alone. On top of this we add the normal latency of the internet itself ; a recipe for sluggish service for sure, and a gamers nightmare!
The data rate cap is to allow them to sell as many connections as possible, with the limited hardware they have in orbit.
Look to find a microwave linked company, and If you are lucky, they may give you free internet to set up a local hub. :D