There are several effects of Kessler Syndrome. The one people focus on is the worst one where there's so much junk that we can't safely get anything past that orbit for decades or even centuries. That won't happen in LEO, because, as you say, stuff will come down with the bit of atmospheric drag at that height.
Which doesn't solve the other issue, which is destroying everything in LEO right now. Astronauts would likely die.
The charger location is what's forcing Model S owners to back into supercharger parking spaces. Everyone else was inconvenienced for Elon's benefit.