Not just spacenazi nightmare, but basically any capitalism makes the whole idea dumb : watch the tv show For All Mankind. They go right into space unions vs nation state space agencies, pretty interesting actually.

But it would be a nightmare for anyone but musk himself, who wants to go be a space slave for no benefits? There could never be freedom or individualistic incentives, its <1% chance to be like Firefly and >99% chance to be The Expanse