Could this be a military image processing use? - imagining you're scooping up earth observation in real time, if you AI analysed it locally and then just sent a 'Missile at coordinate.....' and then just the image where you spotted it, it wouldn't be so much the latency as the bandwidth reduction.
In-orbital-plane data processing is an interesting idea! Laser links are much simpler to do between satellites in the same plane than across planes or even down to Earth.