I read about this a while ago. What disturbs me most about this is that this is exactly how the first Cold War started. US gets bomb, scares Soviets, Soviets get bomb, each side builds up bigger and bigger arsenals. At least the upside of nukes is that there is a chance to intercept the missiles before they hit, no matter how small that chance may be.
With satellites, it will be the same chain of events as the first war. Only this time, the US might deem an enemy satellite a threat, destroy it with an A-Sat launch/space mine, only to provike the other guy into a ground bombardment of the US. Except they probably won't use missiles. They will probably use tungsten rods dropped from sapce. These projectiles use kinetic energy to destroy their target. Unfortunately, it means that those "Rods of God" will travel so fast they cannot be intercepted. So the only way to avoid a strike on US soil is a preemptive strike, which could result in the above scenario. As you can see, it's a vicious cycle.
The only good point, if it can be called that, is the damage will be highly localized. The only thing that would be destroyed is what was hit.
If space is weaponized, we might be looking at the Second Cold War.