Some of us in the private launch industry have come...the hard way...to this same conclusion. There was a great window of opportunity back when it looked like companies (Teledesic, etc.) would be launching multiple small comsats to low Earth orbit. For such a market, launch costs are a significant chunk of expenses, never mind replacing busted satellites. Unfortunately, nothing came of it, and the collapse of Rotary Rocket probably traces itself to the collapse of the small LEO satellite cluster concepts.

The big market was always GEO comsats, but we finally figured out that the huge launch costs were not enough to get comsat companies to switch to a cheaper booster when the comfort and reliability factor of using a known system was factored in. In other words, Hughes was not going risk an enormously expensive comsat trying out a new booster to save a few tens of millions of bucks.

Right now, the tourism market looks promising. Ideally, you would want to develop a system for tourism that has a growth option to orbital payloads (not many of the current concepts do.) Once a launch system has many successful launches under its belt, more mainstream payload customers will find the lower prices a lot more attractive.