This is just a wild guess, but could there be more to it than just solving traffic problems? I mean, the best solution for a permanent settlement on Mars would be underground, as to shield from radiation etc. It's a funny thought, but it would make sense to aquire experience with large earth-moving operations to improve on the technology and study the feasibility.
Ah, the underground Mars colony. It was confusing to me as to why this was so relevant to SpaceX that they'd not only take away engineering resources from other projects, but also start ripping up their parking lot to experiment.
If you want to build a radiation-shielded settlement on Mars, the best bet is to dig. But how do you dig on Mars? Just as Tesla & SpaceX solve the question of electric power in space, this project starts to solves the underground colony question...
I doubt it. Public contracts would be the bulk, if not the overwhelming majority of their business. Just like with SpaceX, which relies heavily on NASA and USAF contracts.
I think it'll be neat to continue to use the word "earth" as a quaint anachronism in some long distant future. A great opportunity to explain to kids that humanity was once limited to a single astronomical body...
When I was a child and learned the name of our planet was Earth, I was extremely disappointed. How could we possible name our own planet after something as boring as 'dirt'?