I worry about them, too. I am not worried about my investment, that's just for fun. As to how successfully they can compete with Big Gov't, I don't see that happening. They are in a niche, a piece of the flight regieme that NASA hasn't been interested in. They can fly into space every day from now on, they can fly into orbit every day from now on, they can even fly to the moon every day from now on and it won't affect the course of space development and it won't compete with NASA or private space development.
He is thinking "If we build it, they will come." like Orbital Sciences did with their NIRTSATS. (I haven't kept up on them lately.)
Then of course, there is the tourist industry - the ONLY way to make money in space.