What you're essentially arguing for is SpaceX building this for the government and government being the middleman.
More money would be spent. Not less.
Also frankly I would mind companies like SpaceX being contracted to build and sell satellites a lot less than them also continuing to control or operate them
The government has Starshield. And several other non SpaceX satellite systems. They famously sent four (4) recievers of that sort to Ukraine.
There's this idea out there that SpaceX is somehow stealing from NASA. Paired with the notion/assumption that the government builds its space vehicles. Completely incomprehensible.
For Internet, other satcom providers are now cheaper post Starlink.