The reason that they need to stay above the equator, is that, if they did any other sort of circuit, then they would appear to oscillate either side. Look at the equator, and imagine it tolted a few degrees, it would still pass over it, but as the ground moved underneath it, it's orbit would take it over different areas. In order to stay above any other place on earth would require the satellite to take a path that didn't bisect the earth, meaning that the forces wouldn't balance.