It's more of a "sure, you can waste money on that" sort of approval.
People don't really understand the scale of what's needed to actually put large structures in space. Or in this case 50,000 satellites.
The plan is horrifically bad, but also completely unfeasible.
The FCC shouldn't be enabling this scam, but I'm not that worried.
Or no more worried about this scam than any of the dozen of active scams by semi-competent tech bro billionaires.