Elon Musk: Rockets will fly people from city to city in minutes

There's issues inside that - pollution for one. Even if you're running LOX/LH2, that's a lot of hot steam to be dumping in the atmosphere.

Also, physics. How do you make a rocket low enough mass to fly, yet stiff enough to not scare the passengers and/or buckle,and strong enough to re-use? Meta-materials don't really exist just yet...