I think it's a bad idea to play satellites for tournaments that you can't bankroll! You won't be able to play them properly! The only exception is events that can change your life ( for example, Venom)
I think, it depends on, why you play. For recreational players I can see the appeal of satellites looking for that chance to get lucky and turn a small amount of money into something much bigger. Pretty much like buying a lottery ticket.
But for people, who are looking to play poker for profit, satellites are mostly a trap. If we are not bankrolled for at tournament, its better to take a "shot" by playing a satellite than by buying in directly, since we spend less money that way. But we are still taking "shots", and while all of us have done that from time to time, it really should be kept at a minimum. "Shots" usually fail, so all, we are doing, is mostly to postpone the time, where we have build up enough bankroll to genuinely move up.
Which we should also do just one step at a time. If we are used to playing 11$ tournament and buy into a 88$ tournament, we are likely going to find ourselfes outmatched by the majority of the field. And as you say, we are liking going to end up playing with "scared money", if we run deep, and the next payjump is now almost the size of our entire bankroll. So instead we should continue to play 11$ tournaments and gradually add more and more 16,5 and 22$ tournaments to our mix.