However, there's a benefit in this case: heat shield probably scales with area (often something like mass^(2/3)), making it progressively less significant compared to fuel mass (which is roughly a constant fraction, i.e. it scales like mass^(1)). I think a high altitude launch site could make a significant difference as well (although that creates other logistic inconveniences). Atmospheric pressure approximately halves every 5km, and air resistance is roughly proportional to pressure.