For real time games, yes, for the vast majority of traffic, no. Streaming and web browsing are plenty interactive enough for this to matter. Even VoIP does perfectly fine if it's tuned properly.
Browsing on 500ms is terrible and 500ms delay on voice ruins conversations. Most streaming apps don’t even have deep enough buffers to deal with the terrible latencies of satellite.
A single web page load of a “modern” website requires 10s of TCP connections to load resources from CDNs, each of which requires TLS handshakes taking 1.5 seconds, which are not initiated until the initial page is downloaded enough to see resources to load.
I had to live on this Internet for a summer. It was awful and was only good for long downloads. Everything else was literally better on dial-up. And this was 15 years ago.
