I agree with 2. We should focus on that instead of cobbling together slightly more-advanced rockets. What about trans-atmospheric flight?
When I think the cost should be less, I think that the appropriate materials might now be more prevalent and thus lower in cost; that the computing power allows us to more efficiently and quickly design the appropriate systems and requirements; that we know what to expect in the flight, and so forth. Is this any of this correct?
Aren't the Air Force rockets better and cheaper?