This has nothing to do with Musk. A larger payload fairing diameter means fewer/no elements of the mirror have to be folded up for launch, means reducing or completely avoiding the multi-hundred step deployment procedure, the design of which was both an enormous engineering undertaking and most of the over 300 single-points-of-failure[0] in the final design. It doesn't have to be the SpaceX Starship, but there's no other launch vehicle currently in development with a comparable payload diameter. Since it's a purely hypothetical as the entire design process took place with launching on Ariane 5 in mind, I have no idea what the cost savings would be, but it is self-evident they would be considerable. The thing isn't made of $8B worth of metal, the cost was in engineering it.
[0] https://www.space.com/james-webb-space-telescope-deployment-...