"Let me see if i've got this straight. First we develop the space frontier and the necessary technology and infrastructure with public money, tax dollars, and then, when it's on the verge of becoming profitable, we turn it over to private industry. That's how we did it with nuclear power, telecommunications and earth resources satellites, and the airline industry. This system worked in the past, railroads and the sale of public (Indian) lands in the 19th century, no doubt it will work again."

I would instead, do things to get markets involved in the beginning. Your way seems assbackward, but would agree that is the approach we have been trying and failing to do.

Now, I wouldn't go for the Hudson Bay company approach:
"The Hudson's Bay Company (HBC. TSX: HBC) is the oldest commercial corporation in North America and is one of the oldest in the world. Its initials have often been satirically interpreted as "Here Before Christ". From its longtime headquarters at York Factory on Hudson Bay, it controlled the fur trade throughout much of British-controlled North America for several centuries, undertaking early exploration and functioning as the de facto government in many areas of the continent prior to the arrival of large-scale settlement."
http://en.wikipedia.org/wiki/Hudson's_Bay_Company

I'm not against some company becoming huge and dominent in the Space environmnent, but don't think we should try to *make* this happen. I would instead internationize space in terms of commerce interests and would encourage competion and cooperation.