This is true, but avoiding launching from earth could be done for one of two reasons:
(1) to increase the efficiency of what can be built
(2) to increase the possibility of what can be built
Your point is (1), and I agree with it. The point mentioned above is (2) — even if all the materials for the ISS were from earth, it still could not be constructed on earth and then launched as a whole, and so construction in space is viable.
Is there something I am missing?
Recently (in the last decade) water has been discovered on the moon, frozen in areas of cold permanent shadow in craters.
Also the current US vice president wants to go to the Moon. The previous president wanted to go to Mars.
Mars and the moon both have pros and cons. Mars would be an easier place to survive, but the moon is easier to get to.
Since it takes 6 months to get to mars and only 3 days to the moon and the only advantage for surviving on mars is the mini gravity, I really think we should start with the moon.
Mars also has an atmosphere which contains CO2, which is useful for making methane. It also has a lot of water. (The moon has water too, though it may be less abundant/accessible.)
That is, are there locations on the Moon's surface where the sun is perpetually visible?
But in terms of setting up a base soon and building rockets for example ... the very short travel distance to the moon offsets any advantage the mars has
For a Moon base locations, look up peaks of eternal sunlight. We also have space-grade nuclear reactors and RTGs ready to go.
On the Moon you can have realtime communication, bring way more equipment, have robots remotely controlled from Earth, and get help or evacuate quickly. NASA and China will be able to land people on the Moon, other nations can get rovers/supplies there.
Anything goes wrong on Mars - you are dead. I would pick Moon any day.
No one can survive in any of these places without a space suit, but on Mars you have easier access to the various natural resources you'd need in order to survive and build additional infrastructure. Light for solar power is consistently available on a normal day/night cycle, as is CO2 and water, which can be used to make methane fuel and liquid oxygen. It has concentrations of sulfur, which can be used to make a form of concrete. The gravity is more conducive to long term human health. All this is relevant.
Surviving on the moon or in LEO is also quite possible, it's just that you'd need to bring more equipment and all the resources you can't find on-site.
But for industrial hub, the fact that we have the moon is an absolute miracle. We can build and refuel ships that dwarf our current ones. And we will need moon based factories if we are to make any meaningful progress is settling the solar system. The only things that should ever be lifted off earth is People/ other life, and super high-tech goods like microchips.
The Moon is also close enough to Earth that you can get help, or go back in case you suddenly need surgery. Good luck with that on Mars.
Settling Mars with our current ships is like settling Australia with a canoe.
Still super useful & the short distance overrides much of the downsides.