I'm not commenting on the rest of your post but the "dominating the commercial sector" just so you don't think I'm badmouthing SpaceX. Just wanted to add that if you sell X pounds of cargo to the commercial sector but sell the same capacity to the military for X times 3 then your are not dominating but are subsidized by the state and in a position to undercut the commercial competition. It's not just for PR that SpaceX competitors, both foreign and nationally, are saying SpaceX is propped up by the state.
Was SpaceX uncompetitive in its bids for the government launches or something? My understanding is that they were much cheaper than other bidders, not more expensive.