That would trigger politically-impossible lay-offs in France.
And yet, that seems like the model ESA is moving to. Not exactly - it's more NASA style letting companies bid on launches instead of directly funding rockets. But close enough.
I don't think ArianeGroup is in trouble in the near term.
But Avio - the makers of Vega - are very unhappy about that direction, since the current crop of Rocket startups more directly competes with them.
Not even NASA could resist developing their SLS rocket, which realistically should have been replaced with funding private heavy lift rockets. And that is despite the fact that they are much less politically constrained than ESA.
Germany does it in its national program. https://www.dlr.de/de/ar/themen-missionen/raumfahrttechnolog...
No, but mentioning successful launches of a small disposable rocket in the context of conversation about replicating reusable Falcon-9 is shifting goalposts. Galactic energy, that you named, is only trying to develop its Pallas-1 rocket that resembles Falcon-9.
>how does the toxicity of the fuel matter
It's the technology of the previous century when the need to achieve strategic goals out-weighted a lot of safety concerns.