A few thoughts:
1. The increase in base line from putting the antennas on satellites orbiting only a few hundred miles above Earth's surface does not seem to be much of a game-changer, because the change in base line is only something like 8,000 miles + 2 x altitude.
2. The ability to use higher wave lengths seems to be the real game-changer.
3. Putting large diameter radio dish antennas into orbit seems like the technological problem that needs research development;
a. I wonder it the technique of using a crumpled, preformed NiTiNOL wire antenna, which deploys from its balled up shape by heating the special NiTiNOL wire, would provide enough precision to be useful for radio astronomy.
b. If not, then it seems that fabrication in space from precision built components would be the answer. Once fabricated, the properly shaped radio telescopes could be boosted to the orbits from which they perform their observations.
c. They could be deployed to distances much greater than a few hundred miles. Geostationary orbit would give a baseline increase of (8,000 + 2 x 22,000) / 8,000 = 5.5 times the largest baseline from Earth's surface.
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