Satellite internet is about 10 times faster than dialup, but slower than ADSL or cable. Its still used, but mainly used in rural areas that are too far from an ADSL exchange or are unable to get cable in their street. I dont think it was a cost thing, just an availibility thing.
As for gaming I dont think it would be very good. The upload speed is about 1/10th of the download speed and unlike web browsing, in gaming you need to upload nearly as much as you download.