"It is just plain silly to claim satellite makers will pay for launch vehicle development by NASA."

I agree it's silly.

"At worst it has no impact at best it allows them more freedom to design larger satellites (a stimulous). While launch vehicle makers might suffer economically it is very unlikely near term as the magnum/ares would be intended for manned spaceflight (currently shuttle work) not satellites."

It's either launching satellites or it's not launching satellites- you can't have both.

"While a big drop in per pound cost would result it would not be economical for satellites capable of being lifted by current vehicles due to a higher per launch cost."

You provided no evidence that would suggest that there would be "a big drop in per pound cost".
Ariane 5 can lift more than one satellite, there is no reason why NASA couldn't modify the booster for multiple satellite launches.

"It is unlikley that we will repeat the mistake with the shuttle of mandating a government sponsored vehicle be used."

Why is it unlikely? NASA continues to make the same kind of mistakes repeatitively. If we had an infinite amount of time like in Ground Dog day, perhaps change is possible- and 100 monkeys typing could make a Shakespeare play.