It doesn't seem worse than private companies literally owning people's lives (and having the audacity to call it not slavery). But it seems this is where we're headed, some sort of dystopia ruled by wealthy people.

As for space launches - well, the US Gov did a "great job" at saving what they learned from building the Saturn V, can't imagine them being better at space exploration, either.

Besides, all of the planes and ships are built by private companies, and it's worked OK-ish so far.