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Come on, Hal. Private industry has been going to take over for NASA for more than a decade. Hasn’t happened, and doesn’t seem at all likely to happen. There was an opportunity for it, before the collapse of the commercial satellite market, but let’s get real.
What SpaceX is doing is cool. I’m glad they finally got into orbit. But there’s no real private launch sector. Besides Orbital and the nascent SpaceX, all you have is semi-privatized NASA/military/foreign boosters (Atlas, Delta, Proton, Soyuz, Ariane, Long March).
SpaceX is a long, long way from lunar. They’ve gotten 1 out of 4 attempted 1000lb-ish payloads into LEO. They’re going to hopefully be able to get a heavy-lift launch (from NASA’s Kennedy Space Center) next year, which will give them an MEO/GTO capability.
If anything, commercial space launch is the poster child for the utter failure of commercializing a major business that has no actual business case. NASA may have ludicrous amounts of problems, but that does nothing to change the fact that there is no real business case for commercial space, and there are already far too many players trying to play.
SpaceX will either fail completely with their heavey launch Falcon 9, or will be bought out by Boeing or LockMart.
None of which changes the fact that what SpaceX did is very cool.