The expansion of future manned space flight will depend on the tourist market. Unfortunately it isn't affordable for most people -- yet.
As far as exploration and expanding horizons goes, with our current technology, telescopes are unbeatable and unmanned probes are a distant second.
Since I have worked with both, I have to agree with you. However, putting telescopes on the far side of the moon will accomplish multiple objectives. Better reception and viewing, gets us back to the moon (including the required infrastructure), and will ensure the development of new technologies.
For now, I would like to see humans operating full time in space relatively independent of need from Earth. The space station and the shallow gravity well of Luna should be able to be fairly autonomous unto themselves, and create by themselves much of the infrastructure needed to do preliminary planetary exploration.
I have read the arguments concerning Moon vs., Mars as a first primary destination, and I lean towards Luna. It will give us the engineering skills and practice we need for sustained, long duration interplanetary travel.
Whatever happens with space travel, I am convinced that when we are doing it, we will wonder how we got along without it it will be so defining of humanity at it's best; when we are at the vanguard of exploration of a new frontier.