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It's terrible for online games because it's wireless. All wireless internet is just horrible for games. A friend of mine someplace in California has wireless T3 and his ping is always over 300 when we play online games together.
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This statement is completely untrue. Yes satellite service is bad for games because of the distance the data has to travel. The satellites are approximately 22,000 miles away. That's 88,000 miles round trip for each packet.
Other forms of wireless internet such as microwave are much more efficient. It sounds like your friend has been fed a line of garbage by his ISP. A T3 is 45 mbit/second and costs thousands of dollars a month to lease. The company he buys from may very well have a T3, but it's not dedicated just to him. He probably shares the line with a few hundred or thousand other people. When the line gets busy, the service gets slow. Simple as that.
We use a wireless connection here and it is extremely quick. Ping times are even better than cable and DSL. It all depends on how the ISP equipment is set up and how good the customer to resource ratio is.