Straybow: the prizes are mostly psychological. Someone posts a prize, and an amount and that encourages others to get the prize money. So what if you spent 20 million dollars to get 10 million, you still won the prize.
But more importantly, you won a place in the history books. Now, it HAS been done. The question about whether it can or can not be done is answered.
The reason why manned space flight has been such a disappointment of late is because there is no place to go and no way to get there. Why fret and worry about stuff that is simply not doable? And even if doable, where are you going to go? Mars is a frozen desert with a thin and poisonous atmosphere. Venus, makes Hell look hospitable. Most of the moons and planets are either airless rocks, gas giants or in some other way inhospitable to human habitation. Besides all that money that gets wasted on space research can be better used some other way.
At least this is the perception. And perceptions count a lot here. We don't try to do things we think are impossible. We try to do things we believe might be possible. Whether that perception or belief is accurate, well, we don't know until after we have tried.
The key point is the trying. Then we can find out whether it is doable or not. This is the real meaning of yesterday's flight. Not that Paul Allen, Burt Rutan and Mike Melvill are in a position to win the X-prize. But that these guys have THEIR OWN SPACE SHIP! They are not a government, they are not a nation and they have no ability to tax a single sole. They did it on their own dime.
Burt has talked about space tourism, and whether that is viable I don't know. I will tell you I would go in a heart beat. Don't even ask, you'd have footprints up one side and down the other as I ran you over for a chance to get aboard.
Right now there is no "there" to go to. Yet. But then we did not have a way to get there before. Now we do.
Economic's fundamental principle is the law of supply and demand. Demand is solely pyschological. Sometimes we file some desires away because they are impractical, like my own dreams of space flight after I found out I needed glasses. And sometimes, like yesterday, things we thought were impossible, some smart SOB proves it wrong, and those old dreams become demands.
As for the Delta Clipper, it was a NASA project, and I never got the feeling NASA was really supportive of it, that they were more interested in Lockheed's entry. The explosion, and the landing gear failure did a lot to silence support for that project, (unfairly in my opinion) and Mac Dac did not have the wherewithall to continue the project on their own dime, versus NASAs. But then Mac Dac has investors that might get upset at such a 'waste' of money.
Which I think is a shame. Even if the Clipper were not great for this planet, it would be just what is needed for the moon.