Since NASA has repeatedly demonstrated its inability to develop a new rocket (something like $21B wasted in failed attempts over the last 20 years), it certainly makes sense to outsource launch services to the free market instead of trying to relive the Apollo era.

However, since there is a lot of interesting exploration and science that NASA could continue to do that no profit incentive exists for (deep space probes, space telescopes, etc.), so recommending the complete dismantlement of NASA goes too far.

NASA should fund commercial launch providers and buy launch services, and focus its substantial budgets on some really exciting exploration.

Launching things into orbit is a solved problem, no need to solve it again. There is an infinity of unsolved problems NASA could attack once they get over their fixation with building new rockets.

Demonstrating the capability of private industry is SpaceX, who spent $250M in NASA funds to develop and fly a large launch vehicle and a capsule. (econgeeker's details are wrong but the low cost is correct, and Orbital is the firm that is using Russian technology)

$250M is nothing compared with the $20000M NASA planned to spend on its launch vehicle and capsule program.