Even if you ignoring how much drag these must have, and hence how much electrical power you'd need for an ion drive just to keep them up, each spot being a few km across (and only getting light while the satellite is over your horizon) is just not compelling.

Given most people don't have any reason to illuminate several square kilometres at once, for realistic scenarios it will take a lot of satellites before you beat the cheap battery-powered floodlights in my local Aldi or Kaufland, and the batteries in those lasts a lot longer than the 10-15 or so minutes each satellites will be over the horizon, and reflectors like these can only supply sunlight close to sunset otherwise the earth blocks the sun from them.

In the list of things which, if you could make them at all useful, would also be relatively easy to redesign as weapons.