Why not privatize that $600 million-per-flight waste of taxdollars? For more information about how much money could be saved, and how easily we could bring about the changes (much to the chagrin of a couple of bloated contractors and the NASA bureaucrats who don't want you knowing that things can be done around 30 times more cheaply): http://www.spaceprojects.com/space-shuttleIf you keep up with O'Keefe's comments, you'll know that this is in the works.
Unfortunately, we have built this socialist framework for anything dealing with space. Some capitalism exists around the sides, but it is socialist in its heart.
The shuttle itself is a vehicle whose only real market can only be the government.
Right now, the only identifiable large-scale market for space is tourism, and it is far too speculative for anyone to throw a couple of billion dollars at the needed launcher. No launcher NASA is going to develop before the sun goes cold will be capable of servicing that market.
The original Star Wars concept would have required a launcher close to what is needed, but that died when Clinton took office.
The single most important goal of any space related enterprise right now should be a launcher with as close to airline-like operations costs and schedule as is technically possible. Right now the people with money and initiative who are dreaming of orbital hotels and the like are stymied by the fact that there is no economical way to get there.