The Rocket Equation is pretty nasty. When your required delta-v goes up, your reaction mass requirement goes up faster than a polynomial function. Saving the initial 600 mph is very significant. Balloons -- only sounding rockets use those, but they don't do anything but gain altitude anyhow. If you need escape velocity or orbit, then they are pretty much useless. (You might as well build a slightly bigger rocket.)
Please actually do the physics before you post vacuous statements like:
The physics is there and probably workable.
People are having "intelligent discussions" about balloon assisted launch? Eternal September has gotten to HN!