[ethbro]

I see it as somewhat of a catch-22, which I think is the point of dogfooding the boosters with SpaceX's own launch demand.

Nobody builds commodity satellites because there's no cost efficient way to launch them (microsats aside), and nobody tries to pioneer more cost efficient but lower reliability launch systems because there's no proven demand.

Your reasoning shows the edge under current economics. But I think the real money will be made once we get to "Well, I could build a second satellite for lower unit cost and have two in orbit." Because when demand shifts to that, suddenly anyone without a cost-efficient launch system to offer gets priced out of that chunk of the market.