Well, if we want to generate the efficiencies of scale that would ever allow us to get off this rock, we've got to start with something. There is a lot of money kicking around not doing a whole lot right now, and building rockets is more likely to get us going in the right direction than acqu-hiring another Uber for Cats whizzbang startup for grossly more than it is worth.
The question is what is the limit of LEO such that it causes problems for 1) astronomy such they even with knowledge of passing objects it still causes disruptions in images and 2) that we begin the slippery slope of trapping ourselves