[bobbruno]

That's the legal justification for blocking X now, not the root cause. Musk did more than refuse to appoint a representative in Brazil (which could be a subsidiary or any legal resident, not necessarily a native Brazilian). X had representation, and when the natural people leading that representation firm were sued (which is legal in Brazil), he shut down the representation, putting X in a non-compliance state to Brazilian law.

The whole thing started because X refused to take down posts judged as defamatory against some politicians in Brazil, as well as some profiles accused of consistently posting fake news and borderline illegal content. One can disagree with the ruling and appeal, but ignoring a Supreme Court Justice order is not a legal option, which led to the escalation.

True that no one would want to step in as a legal representative of X in Brazil right now, but that doesn't change the legal requirement - it exists so that the State has the power to enforce law over companies effectively operating in the country. The US is doing something similar (in process, motivations are quite different) by threatening to ban TikTok, for instance.

The Starlink ruling is mostly being considered an overreach by the Justice. It may take some time, but it will likely be withdrawn. Him deciding to keep the service for free, as long as it complies with the law, bears no matter and should be read most likely as a publicity stunt.