The question is why does SpaceX stand alone? Why did ULA stagnate? Why can't NG make SRBs that don't have nozzles that fall off? Why can't Betchel build a launch tower on time? What is it about government contracts in these other areas that led to all of this under performance?
The US benefits by having SpaceX around. It would benefit even better by having many SpaceXs around.
Oh, and also I believe it's generally understood that NASA provided very little funding for New Glenn. They gave BO a lot of money for HLS, but that's relatively recent (2023). New Glenn has been in the works since 2013 and was mostly bankrolled by Bezos, with some USAF/DoD money kicked in.