> The federal government is incapable of efficiently allocating resources at scale, it's just the reality.

The US is the Land of Middlemen. Government are capable of doing so (see 'medical care in much of the rest of the world'). That doesn't specifically change that it is generally better for the "common good" that large infrastructure projects are often better in the hands of an entity that is not corporate profit-seeking at all costs.

> That's why we have things like the FCC, FAA and DoD who oversee things like telecommunications and rocket launches

SpaceX is using Tonga as a 'flag of convenience' for these launches, likely because Tonga has a far more lax regulatory oversight system - it's certainly not because of SpaceX's heavy connection to the Pacific island nation.