Rocket launches generate revenue once per launch and for the foreseeable future, there will only a limited number launches per year.
Very good move by SpaceX.
My understanding is Falcon 9 launches are limited by manufacturing and launch pad limitations and not market demand. Launching satellites take away from both of those, so he clearly thinks the direct to consumer business is worth it.
Manufacturing limitations & launch pad availability, once they are resolved (along with launcher reuse) will lead to a point where there is not enough demand to fill the launch roster. This internal demand will help them fill it up.
This is probably a great use if he has extra rockets and launch pad time, but it seems a bit of a side project compared to manned space travel.