Markets where satelite based solution are the only option include maritime, desaster areas, aviation and remote areas without inhabitants. Everything else, Starlink competes with, e.g., 5G. Just how competitive Starlink is, nobody outside SpaceX knows for a lack financial data. And since the use of reusable rockets only got traction when SpaceX created in-house demand for them, well, I am sceptical regarding the economic viability of it.
As I said, it can be typical Musk goal post moving, a viable business idea or a combination of those two. And by the way, Uber was cheaper than Taxis for a long time by selling a dollar for cents, and the same as Uber SpaceX has access to capital other ISPs just don't have. Doesn't mean SpaceX ia serving a market, remote areas, existing ISP are neglecting for decades by now.
In parts of Asia and Africa where SpaceX operates, they match or beat prices of competitors today. And of course they beat other sat competitors on pricing.
In the US there's parts of cities and suburbs where wired service is available but unreliable or hard capped with overages.
Reusability helps with reliability. Also allegedly helps with cost and cadence.
To the everyday man there's no difference charging 64 million or 100-150 million.