The idea that Light squared got a raw deal from the FCC is a joke!
Any moderately competent communications engineer could tell you their proposed system was certain to encounter problems with GPS. The only uncertainty was whether the problems would be serious or very serious!
The technical evaluation that let them explore this system was massively biased in their favor. They just could not move the shares to the greater fools before someone woke up to how flawed the plan was.
Iridium failed because the company did not do proper market validation. Light squared did not do proper technical validation, or they thought they could politically influence the FCC process and sell to uninformed investors.
In this case the market worked. Let's let it work all the time.