We faced this at Starband, it's absolutely true that sat Internet has limitations and there's no really good way of engineering your way out of them. Sat Internet is not for everyone.
So I'm very amused by this WildBlue propaganda from Rocky Mountain News, what a puff piece.
Starband had dozens of the smartest engineers I've ever worked with, and they were all experienced sat guys. They twiddled with the TCP stack, mucked around with the packet encoding, and etc (sat stuff I don't really understand). We built a huge cache farm and did everything else we could think of to optimize the user experience while minimizing the (inescapable) latency effect.
Physics is physics, and I can't imagine that WildBlue has overcome that little stumbling block despite their fantastical PR.
That old saying about the speed of light: it's the law. Nothing can change that as far as we know so you have to have that distance latency in place.
I think the ultimate solution here will be WiMax but we'll see.