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> The US government keeps funding SpaceX through a number military and civilian contracts

The US government funds satellite/space stuff generally. Look at how much money has been spent on DoD polar orbit, MEO (GPS, etc) and geostationary orbit satellite development, construction, launch costs and associated earth station construction over the past 20 years. Mostly from traditional DoD contractors like Boeing and United Launch Alliance. Throwing some money at SpaceX is actually quite "new".

If you stop building any highly technical thing for a long period of time, you lose the institutional knowledge base and engineers/technicians who can do it. The UK had a great deal of trouble and delays when they re-started nuclear submarine construction after a 15+ year gap with the Astute class, because everyone who was involved in that industry had gone and done something else or retired. It's pretty logical from a national-security point of view that the Europeans and ESA want to maintain a minimum level of capability to launch stuff on their own, even if it's not as "good" as a re-usable Falcon 9 / Falcon Heavy.




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