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I'm not clear on how "the vaccine does not effectively prevent transmission" translates into "vaccinate everyone and give booster shots at once".

Because the vaccination reduces the severity of disease so you don't want the unvaccinated getting very ill, and you don't want people with waning vaccine-induced immunity getting ill.

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Lower hospitalization rates also reduces the issue of not being able to get treatment for non-covid issues when the hospitals are full of covid patients [1].

[1] https://www.cbsnews.com/news/icu-non-covid-patients-wait/

Agreed. However, once we've vaccinated all the at-risk populations, isn't the benefit of vaccinating everyone else marginal?

No because vaccination still reduces the risk of severe disease and hospitalizations.

But those were already marginal in children, for example. Aren't you concerned about the risks to children? What benefit do they obtain in exchange for that risk?

Has there been any data suggesting that the vaccines present a significant risk to children?

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