Well, no matter how it came about, the US can build rockets again. The best ones in the world. You can pretty much get away with anything if you have a relationship like that with the DoD.
> SpaceX was sold as different and the illusion of that is fading.
The "illusion" of what, building actually working and affordable space hardware? The only way that could "fade" would be if someone else like Boeing replicated their successes. As long as SpaceX is technically successful and others aren't, SpaceX being different will be not an illusion but reality even just on that basis alone.
> SpaceX was sold as different and the illusion of that is fading
Is it really? They're moving faster than anyone else right now, and hitting some good milestones on Starship. They're building a portfolio of business lines from Starlink, through smallsat ridesharing, to super heavy lift and human space flight for commercial and governmental customers. I don't see other space companies catching up soon.
The illusion of Musk being some sort of business guru is certainly fading, but I don't feel that SpaceX are losing their edge.
The gift of a bunch of employees who care more about activism than the work? This is not a gift I would ever want to receive.
I doubt this affects their ability to win contracts in the slightest. Their biggest competitors are all defense contractors, not exactly more sympathetic to causes like this...
No one will care if their competitors have similar issues, SpaceX was sold as different and the illusion of that is fading.