I think where the economics around that get screwed up is that supply <-> demand are very disconnected from each other here - tens, if not hundreds of millions and in a few case billions of dollars are spent on the payloads for Falcon, and Starlink - SapceX itself is 2/3rds of their own volume. Before Starlink started launching there were clear signs that SpaceX was building more capacity then the market could bear.

If you don't gain any additional volume by lowering cost, it doesn't make any sense to lower your cost.

It also doesn't help that Rockets (for fairly obvious reasons) are highly regulated, which further distorts this market.