The only down side is that a country that can launch a payload into orbit, can launch that payload into an orbit that intersects the planet (effectively making it an ICBM). You really want such countries to be run by reasonably stable governments (I know you don't get to choose but still). I think India having this capability is great, Pakistan? Not so much, Iran? Probably even less excited, and North Korea? Not excited at all.
The only down side is that a country that can launch a payload into orbit, can launch that payload into an orbit that intersects the planet (effectively making it an ICBM).
This is exactly what the original space race was all about. All the launch platforms up until Saturn were for nuclear launch.
Of course, and the trick is monitor payload size, getting 500kg into Low Earth Orbit doesn't help your nuclear ambitions at all, but getting 5,000kg into LEO does.