Is this a case of doubling down, whilst SpaceX waits for the demand to launch satellites at the lower price grows. Its one thing to be able to launch satellites far more cheaply than other companies, perhaps the economics demands certain number of launches a year to keep capacity up and price down? The question is what happens when they launch all 1000 satellites?
I've always seen this as two things. The first being space x filling in gaps in their launch schedule as you've pointed out. The second is to launch a commercial services which can provide a constant, predictable income to fund other projects. The upfront capital must be huge but with debt markets still this cheap i'm not surprised they're investing.
But I visit reddit where tesla/elon/spacex topics are boosted with upvotes.
Im just bitter because I believed in him, but his promises fell flat.