In general, the smaller the separation, the smaller the synthetic aperture.
Precise ranging and relativistic corrections are what permit large scale experiments like LIGO and LISA to work as a device the size of the complete aperture.
The GP was presumably thinking about downward looking optical sensors. An 0.1km aperture in the visible at LEO would have quite significant resolving power.
Precise ranging and relativistic corrections are what permit large scale experiments like LIGO and LISA to work as a device the size of the complete aperture.