Musk's function isn't to design the rockets, it's to believe so totally in the idea, to commit so much of his own time and money to it, to overflow with passion, that a generation of engineers are willing to follow him down a path to either greatness or ruin. History is littered with failed rocket startups.
You have to be a little bit crazy to believe you're going to do that kind of stuff. Hell, even the smallest startups face impossible odds for success.
NASA could have a charismatic front man. I'd nominate Neil deGrasse Tyson. But here's the problem: NASA is ultimately run by Congress and the executive branch, not Neil deGrasse Tyson. Ultimately, his words would mean nothing because he can't back them up.
Musk, when he says he's going to build a Raptor engine, has the authority to make it happen.
Well, yes, I think they should. People are drawing the completely wrong lessons from Jobs/Apple. "There's too much worship!" well, duh. Jobs inspired people, and that inspiration led to extremely dedicated fans.
Jobs made use of that in the tech sector, but where we really need it is in sectors which are highly affected by the good will of humans.
Charity. Science. Care of the planet. The development of the human race. Very-long-term thinking. All these need charismatic frontmen, people who inspire others to think about their own future and the future of others.
Absolutely, yes. Hell, look at what Chris Hadfield did for the CSA.
The SpaceX Falcon 9/Dragon was designed by SpaceX, driven by Elon Musk's requirements. The part where the design matched what NASA wanted for the COTS program was a happy coincidence, but NASA were not driving the original design specifications.
Of course, the F9/Dragon was adapted to NASA standards, and is also an effective satellite launch vehicle.
Watching the way HN reacts to SpaceX, in contrast to say, NASA, or the ESA makes me think those organizations should hire a charismatic frontman, too.
Edit: For example, see my sibling comment: "The thing that intrigues me is in the new innovations he had in his rocket, and why NASA didn't have it before SpaceX." (emphasis mine)