Dumping is a tactic that can be used whether you are blitzscaling or not.
Multiple competitors can blitscale. Blitzscaling or not, the problem is when a market has no competition. This is century old solved economic and legal theory.
Also the worst things in society
What it tells you about govt is that it’s an important organizational process that has deep implications.
Blitzscaling, when dressed up by the VC class, is more along the lines of "prioritizing growth over efficiency". And all the halo projects from its advocates pretended or are pretending that profit margins don't exist until everyone else is dead; your focus on efficiency can wait until everyone else has been strangled because they can't pretend that making money is optional.
I feel that you are attempting to thinly slice some very wispy hairs.
Capital growth did not give us the spacecraft and nuclear bombs. Massive government spending in the face of a geopolitical and ideological rival did.