> With reuse the may well be $10m per launch or even less
That is a very low estimate. Most people assume more like $20m per launch. Some say $15m.
You still need to manufacture a complex upper stage and complex engine. Reuse of the Merlin is not perfect. It involves a lot of transportation. It involves having a substantial navy and so on.
All in all including fix cost, I would say the can't make it much cheaper.
To get cheaper a next generation rocket is needed.
> What people forget is that payloads are deeply coupled to their launch vehicles. The launch vehicle will dictate the maximum weight and dimensions of the payload. You can't just take a payload designed for one vehicle and put it on another.
While somewhat true, its not universal. Many adopters are standards. And as long as the conditions are not so different. Like if you move between a liquid and a solid rocket, the environment is not that different.
> The evidence for this is the relatively few Falcon Heavy launches we've had and are planned.
There are 5 Falcon Heavy launches planned.
And the thing with Falcon Heavy is that most payloads are volume constraint, and the Falcon Heavy doesn't actually increase that over Falcon 9 while being strictly more expensive.
At the end of the day, the worst case is Starship is a marginally cheaper Falcon 9.
> What else will it be used for? That's a bit of an open question.
Certainty a problem but only once you get to the very high launch rate musk wants. If on a per launch bases its cheaper then Falcon 9, it will have a reason to exist. And from there you can hopefully increase rates over time as the industry takes it into account.